Morgan Stanley expects $200 million fine for misuse of personal devices

Morgan Stanley expects to pay a $200 million fine related to a broad U.S. investigation into the use of unapproved personal devices, according to its earnings statement.

That amount is based on discussions the firm has had with the Securities and Exchange Commission and the Commodity Futures Trading Commission, which have been probing the matter across Wall Street.

The bank disclosed the expense in its second-quarter earnings, saying the firm’s efficiency ratio was 74%, impacted by $200 million “related to a specific regulatory matter concerning the use of unapproved personal devices and the firm’s record-keeping requirements.”

In December, the SEC and the CFTC imposed $200 million in fines on JPMorgan Chase & Co., saying that even managing directors and other senior supervisors at the bank had skirted regulatory scrutiny by using services such as WhatsApp or personal email addresses for work-related communication.

In February, Citigroup Inc. said in a filing that it was cooperating with the SEC as the regulator investigated “communications sent over unapproved electronic messaging channels.”

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