SEC-PR-2412-193 (Dec. 9, 2024) (SEC-PR-2412) SEC Charges Morgan Stanley Smith Barney for Policy Deficiencies that Resulted in Failure to Prevent and Detect its Financial Advisors’ Theft of Investor Funds Excerpt: Washington D.C., Dec. 9, 2024 — The Securities and Exchange Commission today charged Morgan Stanley Smith Barney LLC (MSSB) with failing to reasonably supervise four […]
Category: Internal Policy Failures
Internal Policy Failures refer to shortcomings or lapses within an organization’s internal controls and compliance frameworks that can lead to violations of laws or regulations. These failures often attract regulatory scrutiny because they may indicate a lack of oversight, inadequate risk management practices, or insufficient training for employees. For instance, if a financial institution fails to implement proper anti-money laundering procedures, it could face investigations and penalties from regulatory bodies. Such failures not only jeopardize the integrity of the organization but also pose risks to the broader financial system, prompting regulators to take a closer look at the company’s practices and governance.