Photo: Jorge MartAnez (Flickr)
Morgan Stanley will pay more than $200,000 to the Indiana Securities Division as a part of a settlement agreement, according to Indiana Secretary of State Charlie White.
Global financial services firms like Morgan Stanley charge pre-set fees for the management of trusts and other investments, but the Indiana State Teachers Associationfiled a lawsuit against Morgan Stanley in 2009 accusing the firm of charging excessive fees to the ISTA Insurance Trust.
“We’re glad to see a resolution to another piece of the allegations into violations of Indiana securities laws related to ISTA and those it did business with,” White said in a press release. “We will continue to do everything we can to ensure that the largest possible percentage of the losses is returned to the schools, which are the real victims in this case.”
Morgan Stanley will have to pay a fine of $100,000 and another $110,000 in investigative costs. The agreement to pay the money is a part of a consent decree and does not mean the firm is admitting to any wrongdoing.