To settle civil charges, Morgan Stanley (NYSE: MS) will pay $13 million. Because of coding and other billing system errors, they over-billed some of their wealth management clientele. “The bank was also charged with violating custody rules designed to safeguard investor assets. The bank agreed to settle the case without admitting or denying the charges.” said The Securities and Exchange commission (SEC).
Morgan Stanley’s wealth management unit’s spokeswoman said that the company was pleased to have the matter resolved. Christine Jockle, one of the company spokeswomen, said “All affected clients have been reimbursed and the firm has enhanced its policies and procedures, including discontinuing the use of certain legacy systems.”
More than 149,000 clients were affected from these billing errors, said the SEC. As a resut, the bank has received more than $16 million in excess fees from 2002 to 2016. This is the second time in a month that Morgan Stanley has faced SEC fines.