Which Morgan Stanley branch is being charged by the SEC with securities law violations for investor misstatements?
he Securities and Exchange Commission charged Morgan Stanley (MS) and one of the firm’s former investment adviser representatives Monday with securities law violations for misleading clients about the money managers being recommended to them and failing to disclose conflicts of interest. According to the SEC, Morgan Stanley breached its fiduciary duty to advisory clients in its Nashville, Tennessee branch office by making material misstatements about a program through which the firm assisted clients in developing investment objectives and in selecting properly vetted money managers. Contrary to its disclosures, Morgan Stanley allegedly recommended some money managers who had not been approved for participation in the firm’s advisory programs and had not been subject to the firm’s due diligence review. The SEC said William Keith Phillips of Nashville, then a top producer at Morgan Stanley, steered clients to three unapproved managers in particular. Unbeknownst to investors, Morgan Stanl
