Lucy Caulkett-

It was announced that Morgan Stanley Smith Barney received the huge fine of a $13 million penalty to settle its overcharging of over 149,000 clients during a 14-year period ending in 2016.  Morgan Stanley Smith Barney has accepted the $13 million penalty to settle the misconduct. The Securities and Exchange Commission stated that “Investors must be able to trust that their investment advisers have put appropriate safeguards in place to ensure accurate billing,” SEC New York Regional Office Director Andrew Calamari said.

Lack of safeguards resulted in 36 different types of billing errors that shamefully overcharged customers. The revelation is a disgrace to the company which was otherwise believed to be reputable for its quality and professional standards.

It further emerged that Morgan Stanley also failed to comply with rules requiring annual surprise examinations by an independent public accountant, according to the judgement. The company has reimbursed its customers for the billing errors, dating back fifteen years to 2002.

The failing of overcharging customers or clients is akin to robbery, but one done in a professional manner It reveals high executives and staff acting inappropriately by hypothetically defrauding their clients. Intent may not be easy to proof beyond every iota of doubt, but when a company consistently overcharges a large number of its clients, it raises question as to the extent tto which the extra charges may be deliberate.

Companies like this quickly lose their credibility and integrity, forcing customer and would be customers to have to take a second look t whether they wish to remain customers of an organisation they may well fleece them of money through covert manipulation.