The Securities and Exchange Commission asked Morgan Stanley (MS:US) about “multiple significant deficiencies” in its financial reporting after the firm corrected accounting errors involving loan cash flows, income taxes and derivatives contracts.
Morgan Stanley said that while its Sarbanes-Oxley program identified defects that affected risk assessment and monitoring controls, the “overall design and operation of its control framework” was effective, according to letters (MS:US) between the company and regulator that were released today.
Deficiencies were caught in a “timely manner” and errors weren’t material, the New York-based firm said in the letters.
The correspondence cited passages that included Morgan Stanley’s 10-K annual report for 2012. The SEC said its review was completed in an Oct. 17 letter.
Wesley McDade, a spokesman for Morgan Stanley in New York, declined to comment on the filings.
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