Morgan Stanley has agreed to pay New Jersey's Bureau of Securities $100,000 to settle claims the company violated state law in its sale of non-traditional exchange-traded funds.The state claimed Morgan Stanley failed to adequately train and supervise its financial advisers.

The state also says the advisers recommended non-traditional ETFs to elderly investors who were seeking income. The state says such transactions were unsuitable and resulted in losses.

The state says exchange-traded funds typically involve shares representing an interest in a portfolio or securities that track an underlying benchmark or index. The non-traditional versions reset daily and are intended to achieve objectives only on a daily basis.

The state says Morgan Stanley failed to fully inform investors.

Morgan Stanley did not admit or deny any wrongdoing.


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