(Updates with Finra comments in third paragraph, company’s response in fourth.)
Aug. 22 (Bloomberg) -- Morgan Stanley, owner of the world’s largest brokerage, was fined $1 million for buying and selling bonds for customers at unfair prices.
The Financial Industry Regulatory Authority also ordered the bank to pay $188,000 in restitution to customers, the group said today in a statement. The case involved corporate, agency and municipal bonds, Wall Street’s self-funded regulator said.
“Finra will continue to sanction firms that execute fixed- income transactions for their customers at unfair prices,” Thomas Gira, Finra’s executive vice president of market regulation, said in the statement.
Morgan Stanley was also fined $1 million for similar violations in 2011. James Wiggins, a spokesman for New York- based Morgan Stanley, said in an e-mail that the bank cooperated with Finra’s investigation and that the settlement today involved fewer than 300 transactions during a period when it made 4 million trades. Finra didn’t allege fraud or intentional misconduct, he said.
“Morgan Stanley is committed to seeking the best execution reasonably available for our clients,” Wiggins said.
--Editors: Steven Crabill, Dan Kraut