Alex Kreonidis | Bloomberg Law SEC Press Release No. PR-2011-244 (Nov. 16, 2011); SEC Release Nos. IA-3315 and IC-29862 (Nov. 16, 2011); Administrative Proceeding File No. 3-14628 The Securities and Exchange Commission (SEC) settled charges against Morgan Stanley Investment Management Inc. (MSIM), the primary investment adviser to The Malaysia Fund, Inc. (Fund), a registered closed-end fund. The SEC enforcement proceeding stemmed from an allegedly improper fee arrangement involving the Fund and AMMB Consultant Sendirian Berhad (AMMB), a former sub-adviser to the Fund. The SEC found that MSIM violated the securities laws when it allowed AMMB to be paid about $1.8 million over an 11-year period despite providing no advisory services for the Fund's benefit. Without admitting or denying the allegations, MSIM agreed to improve its compliance procedures and pay approximately $3.3 million to settle the charges.
Misleading Section 15(c) Process
Breach of Fiduciary Duty
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