Morgan Stanley Smith Barney, a global provider of wealth management services firm, has placed certain restrictions on the sale of leveraged, inverse, and leveraged inverse exchange traded funds (ETFs), in response to concerns raised by regulators about these securities.
Reportedly, as of August 7, 2009, solicited purchases of these products will not be permitted in traditional brokerage accounts. Unsolicited purchases in these accounts will be permitted only subject to enhanced oversight and review.
In addition, no purchases of these securities will be permitted in advisory accounts managed by Morgan Stanley Smith Barney Financial Advisors. The company has added that financial advisors have been encouraged to review existing positions in these securities with clients to emphasize their characteristics and risks.
