Articles Tagged with EFTs

The Securities and Exchange Commission (SEC) announced Feb. 14, 2017 that Morgan Stanley Smith Barney will pay $8 million and admit wrongdoing after allegations related to single inverse ETF (exchange –traded fund) investments it recommended to advisory clients.

The ETFs are supposedly unsuitable for long-term investing.  EFTs generally should be sold within one trading cycle.  Morgan Stanley, however, allegedly solicited the ETFs to clients for retirement.

“Morgan Stanley recommended securities with unique risks and failed to follow its policies and procedures to ensure they were suitable for all clients,” said Antonia Chion, associate director of the SEC Enforcement Division.