Morgan Stanley discloses regulators’ request for commercial communications records

Morgan Stanley’s logo is seen on the floor of the New York Stock Exchange (NYSE) in Manhattan, New York, U.S., August 3, 2021. REUTERS/Andrew Kelly

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NEW YORK, May 4 (Reuters) – Morgan Stanley (MS.N) revealed in a filing on Wednesday that it was responding to “inquiries from regulators regarding its compliance with record-keeping requirements”.

The request relates to commercial communications on messaging platforms that have not been approved by the company, the bank said in a regulatory filing.

Reuters reported last October that the U.S. Securities and Exchange Commission (SEC) was examining how Wall Street banks monitor employees’ work-related digital communications, such as text messages and emails. Read more

Morgan Stanley also said Wednesday that it could face civil liability as a result of claims filed by participants in block trades or others “who claim to have been harmed … as a result of a decline in the course of action allegedly caused by the activities of the company and/or its employees.”

In February, Morgan Stanley disclosed that US regulators and prosecutors were investigating various aspects of its investment bank’s block trading activities. The disclosure followed reports that the U.S. Securities and Exchange Commission (SEC) was investigating whether financial executives broke rules by advising hedge funds ahead of large stock sales, known under the name of “block transactions”. Read more

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Reporting by Elizabeth Dilts Marshall in New York Editing by Chris Reese and Matthew Lewis

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