The clarification eases market concerns that September guidance had replaced the existing Morgan Stanley framework.
The US Securities and Exchange Commission (SEC) has clarified that its recent guidance on disclosure for equity-linked structured notes does not replace or restrict the long-standing framework established by its 1996 Morgan Stanley no-action letter. The clarification follows the SEC's September 28 response concerning disclosure for notes referencing individual securities, ETFs, ETPs, indices and baskets, which initially raised questions among market participants over whether issuers would need