(Bloomberg) -- Morgan Stanley disclosed on Monday that the enforcement division of the US Securities and Exchange Commission had requested information about “advisory account cash balances swept to affiliate bank deposit programs.”
The firm has been engaging with the SEC and responding to its requests since April, Morgan Stanley said in a regulatory filing Monday.
Sweep accounts transfer uninvested funds from brokerage or bank accounts into higher-interest earning options, the idea being investors will get a better return than just holding cash. Wells Fargo & Co. disclosed in October that the SEC was investigating its advisory account cash sweeps.
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