In the early 2000s, Morgan Stanley received fees from mutual funds known as the Partners Program that did business with Morgan Stanley in exchange for preferred marketing of their funds.

Mutual funds that paid these higher fees could have their funds designated as preferred. These fees took the form of higher brokerage commissions paid to Morgan Stanley. In turn, Morgan Stanley increased the compensation to individual

representatives and branch managers for sales of the preferred mutual funds shares

coming from the companies that were paying the higher fees.

Morgan Stanley also offered Class B shares of certain of its own proprietary

mutual funds. For sales of $100,000 or more of these shares, the company charged

higher fees at the point of sale. These higher fees were not disclosed. Morgan Stanley sales representatives also received higher commissions for selling these shares.

Morgan Stanley did not disclose the source and amount of any remuneration

received from third parties in connection with a securities transaction. Morgan

Stanley sales representatives also did not disclose the higher commissions they

received on sales of the preferred shares.

which standard did morgan stanley violate? give some recommendation