Morgan Stanley Pays $8m to Settle Charges over Unsuitable ETF Investments

[kreslik.news]

Morgan Stanley’s brokerage arm will pay nearly $8 million to settle Securities and Exchange Commission’s charges that it falsely advertised a single inverse exchange-traded fund to investors who experienced losses after holding the securities long-term.

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Morgan Stanley Smith Barney LLC admitted that it failed to adequately implement its policies and procedures to make clear to clients the risks involved with purchasing inverse ETFs. Unlike a normal index fund, inverse ETFs are designed to profit from the decline in the value of an underlying benchmark. ... (read more)