‘Sweeping’ allegations over cash management

If you tell clients you're putting them in low-yielding investments, is that enough?

Or are you obliged to go a step further and find them the best returns? Those are the questions at the heart of a new lawsuit challenging firms' "cash sweeps."

This particular suit takes a stern look at the 0.01% yields that Morgan Stanley pays on clients' uninvested cash after it's moved to affiliated banks. The plaintiffs' lawyers note those same investors could be getting around 5% from money markets.

Of course, there are justifications for sweeps policies. Bank deposits, for one, enjoy FDIC protection. 

But, again, is that enough?