A regulatory panel says Morgan Stanley must pay Puerto Rican bond investors $3.3 million, citing its failure to share documents concerning “a key employee” and denying the claimants information “highly relevant to the dispute in question.”
The Financial Industry Regulatory Authority’s three-member panel made the decision earlier this week in Miami.
The arbitration panel noted “the extreme prejudice” Morgan Stanley’s compliance failure caused the investor’s counsel in preparing their case, namely the withholding of documents “which the panel deemed were highly relevant to the dispute in question.”
Separately, UBS was ordered to pay some $5 million to investors over issues tied to Puerto Rican Bonds and closed-end funds last week. A nearly $8 million arbitration award was ordered in May.