NEW YORK (Reuters) -Morgan Stanley disclosed in a filing on Wednesday that it is responding to “requests for information and facts from regulators concerning its compliance with document-preserving requirements.”
The ask for is connected to business enterprise communications on messaging platforms that had been not authorized by the agency, the financial institution claimed in a regulatory filing.
Reuters reported very last Oct that the U.S. Securities and Exchange Fee (SEC) was hunting in to how Wall Street financial institutions stored keep track of of employees’ work-associated electronic communications, this kind of as textual content messages and emails.
Morgan Stanley also mentioned on Wednesday that it might encounter civil liabilities from statements submitted by block trade transaction members or other men and women “who contend they were harmed … as a outcome of a share price tag drop allegedly induced by the routines of the Firm and/or its employees.”
In February, Morgan Stanley disclosed that U.S. regulators and prosecutors have been probing different facets of its expense bank’s block buying and selling small business. That disclosure followed stories that the U.S. Securities and Exchange Commission (SEC) was investigating whether economic executives experienced damaged guidelines by tipping off hedge money forward of huge revenue of shares, recognized as “block trades”.
(Reporting by Elizabeth Dilts Marshall in New YorkEditing by Chris Reese and Matthew Lewis)
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