Morgan Stanley Fined For Online Disclosure Failures

Posted on January 13th, 2017 at 12:10 PM
Morgan Stanley Fined For Online Disclosure Failures

From the Desk of Jim Eccleston at Eccleston Law LLC:

FINRA has censured Morgan Stanley and fined it $1.5 million for allegedly failing to provide millions of customers access to online information on purchases of mutual funds and other products.  According to the FINRA order, the problem stemmed from a “View Prospectus Hyperlink” that was not placed on online transaction confirmations following a systems update the firm made in November 2013. In addition, the order also stated that Morgan Stanly failed to send 23,500 letters to customers confirming that they had made investment objective changes, between 2012 and 2016, as a result of technology errors. 

According to Morgan Stanley, the lapses were caused by unintentional coding and system errors and that it failed to catch the errors because of improper testing and supervision. In order to remedy the situation, Morgan Stanley has offered rescissions to thousands of investor customer contracts and hired outside consultants to review the issues. 

The attorneys of Eccleston Law LLC represent investors and advisers nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of securities for financial advisors including Employment MattersTransition Contract ReviewState Licensing and RegistrationFINRA Defense, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.  

Related Attorneys: James J. Eccleston

Tags: Eccleston, Eccleston Law, Eccleston Law LLC, James Eccleston, Morgan Stanley, FINRA, online disclosure failures, mutual funds, View Prospectus Hyperlink, online transaction confirmations, system update, investment objective, unintentional coding, sys

Return to Archive



Thank You from the bottom of our hearts for all you have done for us. When we realized this was a very bad investment - we did not know where to turn for help. Then we received your name. When we called you - you were so kind to us and then agreed to help us. For this we are so very grateful. The world would be a much nicer place if there were more people like the two of you in it. We will always remember all the help and kindness you have shown us. Thank you so very very much for everything.

Wayne and Judy S.


January 25, 2022
Top FINRA Initiatives For 2022

A host of new initiatives are ahead in 2022 at the Financial Industry Regulatory Authority (FINRA), according to CEO Robert Cook.

January 24, 2022
FINRA Set To Issue Crypto Notice And Consider Expungement Reform

The Financial Industry Regulatory Authority (FINRA) is set to issue a regulatory notice pertaining to cryptocurrency as well as expungement reform.

January 21, 2022
CFP Board Establishes New Appeals Commission

The Certified Financial Planner (CFP) Board of Standards has established a new Appeals Commission. As the name suggests, the Appeals Commission possesses the sole authority to adjudicate appeal hearings.