The Massachusetts Securities Division is conducting an investigationof Morgan Stanley's allegedloan sales contests, Office of the Secretary of the Commonwealth CommunicationsDirector Brian McNiff has confirmed with S&P Global Market Intelligence.

Secretary of the Commonwealth of Massachusetts William Galvinis looking into a Morgan Stanley program that offers financial incentives to theteam of financial advisers that sells the most securities-based loans, the New York Post reported July 7. FINRA alsois investigating the program, which allegedly presents conflicts of interest withclients, according to the report.

Morgan Stanley spokeswoman Christine Jockle declined to comment.