When you decide to sign up for a Self-Directed Account with Morgan Stanley, you need to be sure that you understand what your rights are. This includes the security interest in Morgan Stanley's Collateral, the general terms and conditions of the account, and the procedure for handling disputes.
Self-Directed Account Agreement
A Self-Directed Account Agreement is a formal written document that outlines how a particular account owner will use their money. It is important to note that this type of agreement does not confer rights to a third party. Any provisions of this document that are found to be ineffective or unenforceable will not affect the rest of the agreement.
The Self-Directed Account Agreement is governed by New York state law. This includes the Uniform Gifts to Minors Act. However, this is not the only law that applies to this type of account. In addition to federal and state laws, it is also subject to a variety of self-regulatory organizations and the rules of clearinghouses.
For example, Morgan Stanley uses verifiable electronic signatures on written authorizations. In addition, it requires customers to notify Morgan Stanley of errors on their accounts. Unlike other accounts, a Self-Directed Account is not insured by the FDIC.
Other services provided by Morgan Stanley include check-writing privileges for certain types of accounts. Depending on the type of account, check-writing may involve a fee. Another service that Morgan Stanley provides is a debit card.
General terms and conditions
It's no secret that a good client agreement is the bedrock of your business. In fact, some sector organizations require their members to abide by certain standard conditions. Even if you're not a member of such an organisation, it's a good idea to at least have a copy of these standard terms and conditions in your back pocket.
These terms and conditions should be displayed in a PDF file, which should be available online at all times. You should also make sure that these documents are easy to access and retrieve, such as by email. This is especially true if you have a large customer list.
For example, if you're providing your customers with online support, you should be able to provide them with a self-service ticketing system that allows them to manage their own tickets. Likewise, you should be able to send them alerts when tickets are ready for pick up. If you're providing a service in a foreign country, you should be able to provide them a translation if needed.
Morgan Stanley's security interest in Morgan Stanley's Collateral
In June 1996, Morgan Stanley signed a Credit Default Swap Agreement with BNP. The agreement allowed Morgan Stanley to take on the risk of a Magna margin loan in exchange for a fee. At the same time, Morgan Stanley's in-house account traders began taking short positions on Magna stock in anticipation of the risk of a Magna default. This created a significant risk for Morgan Stanley.
BNP was required to disclose all information relating to its Disposal Agent to its participants, including Veleron. Morgan Stanley agreed to keep the information confidential. But despite its efforts to keep it confidential, BNP disclosed some of the information.
BNP's failure to keep the information confidential was a breach of a duty to Veleron. This duty was created by the Investor Pack. The Investor Pack is a confidential packet of information sent to prospective syndication members.
In the Investor Pack, Morgan Stanley agreed to keep confidential "Evaluation Material" regarding the transaction. These materials included the 1.229 billion margin loan. Also in the Investor Pack was the Executive Summary.
If you're involved in a contractual relationship, it's smart to prepare for potential dispute resolution situations. There are a number of different approaches to resolve these problems. However, preparing ahead can help you to avoid costly court litigation.
The best approach is to discuss dispute resolution in the early stages of a contract. It allows the parties to develop their own strategy for resolving their disagreements. When you do this, you can save both money and time.
One of the most common ways to resolve a dispute is through arbitration. An arbitrator is a neutral third party who evaluates your case and recommends a resolution. Your arbitration agreement will specify how the process will work.
Another option is mediation. This is a negotiation process in which the parties agree to meet as often as they wish. They will also agree to pay for their own legal counsel, mediator and administrative costs.
Litigation is the last resort when resolving disputes. In court, you can get a judgment that is enforceable. However, this takes a long time and can be expensive.