WASHINGTON (Sputnik) — The Wall Street investment firm Morgan Stanley has agreed to pay $7.5 million to settle charges that it used its customers’ cash to cover unrelated security trades, the US Securities and Exchange Commission (SEC) announced in a press release on Tuesday.
"The customer protection rule establishes crucial safeguards for investors to ensure that their cash and securities are secure when held by a broker-dealer," SEC Enforcement Division’s Complex Financial Instruments Unit chief Michael Osnato said in the release.
Osnato also noted that Morgan Stanley used a complex trading scheme involving an affiliated company to artificially reduce the amount needed to set aside in customer reserve accounts.
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