The Securities and Exchange Commission says Morgan Stanley has agreed to pay $5 million and settle charges that it gave misleading information to clients about trade execution services and transaction costs for its wrap-fee programs.
The $5 million will be distributed to investors who had such accounts from October 2012 to June 2017, according to the SEC.
"Investment advisers are obligated to fully inform their clients about the fees that clients will pay in exchange for services," said Melissa R. Hodgman of the SEC's Enforcement Division, in a statement.
"The SEC's order finds that Morgan Stanley Smith Barney failed to provide certain clients in its retail wrap fee programs accurate information about the costs they incurred for the services they received," Hodgman explained.