FSA fines Morgan Stanley £1.4m

The trader involved was also banned from performing any function in relation to regulated activities and received a personal fine of £105,000. The FSA says Morgan Stanley failed to put in place adequate supervision to prevent Matthew Sebastian Piper from mis-marking certain positions. Piper failed to accurately price certain positions in illiquid financial products, resulting in Morgan Stanley making a $120m negative adjustment in June 2008. The FSA says the firm's systems and controls were inadequate, and it failed to prevent or detect Piper's mis-marking in a timely manner. Piper ...