US regulators fine and censure Morgan Stanley for mis-selling

Repentant Purcell aims to build bridges with investors

Tuesday 18 November 2003 at 16:00

Morgan Stanley will pay a $50m fine and attempt to build bridges with investors after being found to have mis-sold mutual funds.

US regulators have fined and censured Morgan Stanley for failing to tell its clients that it favoured funds from mutual fund companies that paid extra distribution fees. The firm's investment advisers recommended mutual fund based on how much it would make rather than on the merits of the fund or the asset management firm.