Morgan Stanley was fined $800,000 Tuesday by the Financial Industry Regulatory Authority over failures to adequately disclose potential conflicts of interest in its analyst research notes.
The New York bank self-reported the violations to FINRA, an independent regulator of investment companies.
"Morgan Stanley is pleased to settle this issue of disclosures in certain of its equity research reports with FINRA," the bank said. "Additionally, Morgan Stanley has developed and implemented improved systems for the publication of the required disclosures in response to this matter."
The regulator said Morgan Stanley's self-reporting and steps to correct the problems were considered when levying the fine.
Morgan Stanley didn't properly alert clients about relationships the bank might have with the companies being covered in the research notes, according to FINRA.
Investment banks have separate divisions that provide research and analysis to customers about publicly traded companies, providing recommendations on whether to purchase or sell a stock and projections for future earnings.
Those reports typically list the interest that the bank has in the companies it researches.
Morgan Stanley failed to provide proper disclosures in 6,632 research reports and 84 public appearances by its research analysts between April 2006 and June 2010.
FINRA said the bank failed to tell clients about stock holdings by analysts or analysts' households; about any revenue Morgan Stanley might have received from the companies covered in the research notes; and any role the bank might have had in managing a public offering or creating a market for company stock or debt.
Last month, Morgan Stanley reported second-quarter net income of $1.58 billion.
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