Morgan Stanley Updates Order Entry Process Amid Dilemma Over Miscoded Trades

Posted on June 28th, 2021 at 1:40 PM
Morgan Stanley Updates Order Entry Process Amid Dilemma Over Miscoded Trades

From the Desk of Jim Eccleston at Eccleston Law:

According to an internal memo, Morgan Stanley Wealth Management is tightening its order entry process in an effort to restrict advisors from altering production numbers on trades. The updated order entry process was unveiled as the firm has faced regulatory scrutiny after firing several advisors who allegedly miscoded trades on shared accounts and earned commissions that should have been split. “As part of ongoing enhancements to the firm systems, we are implementing Order Entry (OE) validations that will restrict the ability to change JPNs/FA numbers for individual orders. The purpose of the training is to provide background, guidance, and details related to the system changes”, according to the memo. 

Morgan Stanley has cast a wide net in its investigation, which in some cases date back nearly eight years. Numerous advisors who have been terminated for allegedly miscoding trades claimed to have been acting at the request of the senior manager or advisor. The firings have impacted experienced industry veterans including a Rhode Island-based advisor who was terminated in May for allegedly miscoding trades after spending twenty years at the firm and managing at least $652 million in client assets.

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

Tags: eccleston, eccleston law, morgan stanley, miscoded trades

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