Morgan Stanley

Morgan Stanley Smith Barney Implements New Sales Policy for Leveraged, Inverse and Leveraged Inverse ETFs

Aug 7, 2009

New York —

In response to concerns raised by regulators about these securities, Morgan Stanley Smith Barney announced today that it has placed certain restrictions on the sale of leveraged, inverse, and leveraged inverse exchange traded funds (ETFs). 

Specifically, 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.

Financial Advisors have been encouraged to review existing positions in these securities with clients to emphasize their unique characteristics and risks.

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© 2009 Morgan Stanley Smith Barney

Contact: Media Relations, Christy Pollak, 914.225.6827