Sweeping allegations

It was only a matter of time before plaintiffs' lawyers started questioning the returns firms offer on clients' uninvested cash.

These "cash sweeps" policies become particularly dubious when they're applied to accounts supposedly managed in the best interest of clients. It's easy for lawyers to note that investors could multiply their returns using money markets.

Morgan Stanley, Merrill and LPL Financial now all find themselves the target of lawsuits questioning if their cash sweeps are doing enough for clients. We were raising our eyebrows about them more than a year ago. 

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