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Morgan Stanley Discloses Regulators’ Request for Business Communications Records | Investing News

NEW YORK (Reuters) -Morgan Stanley disclosed in a filing on Wednesday that it is responding to “requests for information and facts from regulators relating to its compliance with report-keeping specifications.”

The ask for is linked to organization communications on messaging platforms that were being not accepted by the agency, the financial institution reported in a regulatory submitting.

Reuters described past October that the U.S. Securities and Trade Commission (SEC) was wanting in to how Wall Street financial institutions stored monitor of employees’ operate-relevant digital communications, these as text messages and e-mail.

Morgan Stanley also claimed on Wednesday that it may possibly deal with civil liabilities from statements submitted by block trade transaction contributors or other people today “who contend they were harmed … as a result of a share selling price decrease allegedly prompted by the things to do of the Company and/or its workers.”

In February, Morgan Stanley disclosed that U.S. regulators and prosecutors were being probing a variety of features of its expense bank’s block trading business enterprise. That disclosure adopted reports that the U.S. Securities and Exchange Fee (SEC) was investigating irrespective of whether monetary executives experienced broken regulations by tipping off hedge cash ahead of large sales of shares, known as “block trades”.

(Reporting by Elizabeth Dilts Marshall in New YorkEditing by Chris Reese and Matthew Lewis)

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