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Allegations: THE HELLENIC CAPITAL MARKET COMMISSION (HCMC) ALLEGED THAT MORGAN STANLEY COMMITTED MARKET MANIPULATION PURSUANT TO ARTICLE 7,PAR. 2(C) OF LAW 3340/2005 BY DISCLOSING THAT THE FIRM, THROUGH VARIOUS SUBSIDIARIES, HAD ACQUIRED MORE THAN 5% OF ALPHA BANK,HOWEVER 4.16% OF THE HOLDING WAS HELD BY A SUBSIDIARY AS CUSTODIAN ON BEHALF OF A CUSTOMER. Status: On Appeal Sanction Detail: THE 50,000 EURO (APPROXIMATELY $52,960 USD) SUMMARY FINE WAS APPEALED ON MARCH 6, 2017. Summary: THE 50,000 EURO SUMMARY FINE WAS APPEALED ON MARCH 6, 2017.

Allegations: HCMC ALLEGED THAT MS FAILED TO PROPERLY OR TIMELY REPORT WHEN MS HOLDINGS IN CERTAIN COMPANIES INCREASED OR DECREASED BY MORE THAN 3%, OR EXCEEDED OR FELL BELOW 5%, 10% AND 15% THRESHOLDS, AS REQUIRED BY GREEK PRESIDENTIAL DECREE PD 51/1992 AND LAW 3556/2007. Status: Final Sanction Detail: THE 71,000 EURO SUMMARY FINE WAS PAID ON NOVEMBER 28, 2014. Summary: ON AUGUST 21, 2014, MORGAN STANLEY (MS) WAS INFORMED THAT THE BOARD OF DIRECTORS OF THE HELLENIC CAPITAL MARKET COMMISSION (HCMC) ISSUED A DECISION THAT COMMENDED A PROCEEDING ASSERTING THAT A) MS FAILED TO PROPERLY OR TIMELY REPORT WHEN MS HOLDINGS IN CERTAIN COMPANIES INCREASED OR DECREASED MORE BY THAN 3%, OR EXCEEDED OR FELL BELOW 5%, 10% AND 15% THRESHOLDS, AS REQUIRED BY GREEK PRESIDENTIAL DECREE PD 51/1992 AND LAW 3556/2007, AND B) MS SHOULD BE SUMMARILY FINED 71,000 EUROS. MS DID NOT CHALLENGE THE SUMMARY DECISION AND FINE, WHICH BECAME FINAL ON NOVEMBER 28, 2014 WHEN MS PAID THE SUMMARY FINE.

Allegations: THE NEW YORK ATTORNEY GENERAL'S OFFICE ("NYAG") ALLEGED THAT MORGAN STANLEY VIOLATED NEW YORK LAW IN CONNECTION WITH THE MARKETING, SALE, AND ISSUANCE OF CERTAIN RESIDENTIAL MORTGAGE-BACKED SECURITIES BETWEEN 2006 AND 2007. Status: Final Sanction Detail: MORGAN STANLEY MADE PAYMENT OF $150,000,000 BY WIRE TRANSFER ON 2/24/2016. Summary: ON FEBRUARY 11, 2016, MORGAN STANLEY ENTERED INTO AN AGREEMENT (THE "NYAG SETTLEMENT AGREEMENT") WITH THE NEW YORK ATTORNEY GENERAL TO PAY $150 MILLION TO RESOLVE CERTAIN POTENTIAL CLAIMS RELATED TO MORGAN STANLEY'S MARKETING, SALE AND ISSUANCE OF CERTAIN RESIDENTIAL-MORTGAGE BACKED SECURITIES. MORGAN STANLEY ALSO AGREED TO PROVIDE $400 MILLION OF CONSUMER RELIEF, AND THE REQUIREMENT OF AN INDEPENDENT MONITOR TO OVERSEE MORGAN STANLEY'S PROVISION OF THE CONSUMER RELIEF. THE NYAG SETTLEMENT AGREEMENT WAS MADE IN CONJUNCTION WITH AN AGREEMENT BETWEEN MORGAN STANLEY AND CERTAIN MEMBERS OF THE PRESIDENT'S RMBS WORKING GROUP OF THE FINANCIAL FRAUD ENFORCEMENT TASK FORCE. THIS SETTLEMENT DOES NOT RESULT IN ANY FINDING OF VIOLATIONS OF LAW, AND CONSTITUTES A FINAL DEPOSITION OF THE POTENTIAL CLAIMS REFERENCED ABOVE.

Allegations: THE ILLINOIS ATTORNEY GENERAL'S OFFICE ("ILAG") ALLEGED THAT MORGAN STANLEY VIOLATED ILLINOIS LAW IN CONNECTION WITH THE MARKETING, SALE, AND ISSUANCE OF CERTAIN RESIDENTIAL MORTGAGE-BACKED SECURITIES BETWEEN 2002 AND 2008. Status: Final Sanction Detail: MORGAN STANLEY MADE PAYMENT OF $22,500,000 BY WIRE TRANSFER ON 2/24/2016. Summary: ON FEBRUARY 11, 2016, MORGAN STANLEY ENTERED INTO AN AGREEMENT (THE "ILAG SETTLEMENT AGREEMENT") WITH THE ILLINOIS ATTORNEY GENERAL TO PAY $22.5 MILLION TO RESOLVE CERTAIN POTENTIAL CLAIMS RELATED TO MORGAN STANLEY'S MARKETING, SALE AND ISSUANCE OF CERTAIN RESIDENTIAL MORTGAGE-BACKED SECURITIES. THE ILAG SETTLEMENT AGREEMENT WAS MADE IN CONJUNCTION WITH AN AGREEMENT BETWEEN MORGAN STANLEY AND CERTAIN MEMBERS OF THE PRESIDENT'S RMBS WORKING GROUP OF THE FINANCIAL FRAUD ENFORCEMENT TASK FORCE. THIS SETTLEMENT DOES NOT RESULT IN ANY FINDING OF VIOLATIONS OF LAW, AND CONSTITUTES A FINAL DEPOSITION OF THE POTENTIAL CLAIMS REFERENCED ABOVE.

Allegations: THE U.S. DEPARTMENT OF JUSTICE ALLEGED THAT MORGAN STANLEY VIOLATED FEDERAL LAWS IN CONNECTION WITH THE MARKETING, SALE, AND ISSUANCE OF CERTAIN RESIDENTIAL MORTGAGEBACKED SECURITIES BETWEEN 2005 AND 2007. Status: Final Sanction Detail: MORGAN STANLEY MADE PAYMENT OF $2,600,000,000 BY WIRE TRANSFER ON 2/24/2016. Summary: ON FEBRUARY 11, 2016, MORGAN STANLEY ENTERED INTO AN AGREEMENT (THE "SETTLEMENT AGREEMENT") WITH THE U.S. DEPARTMENT OF JUSTICE, CIVIL DIVISION AND THE UNITED STATES ATTORNEY'S OFFICE FOR THE NORTHERN DISTRICT OF CALIFORNIA, CIVIL DIVISION, TO PAY $2,600,000,000 TO RESOLVE CERTAIN POTENTIAL CLAIMS RELATED TO MORGAN STANLEY'S MARKETING, SALE AND ISSUANCE OF CERTAIN RESIDENTIAL MORTGAGE-BACKED SECURITIES. UNDER THE TERMS OF THE SETTLEMENT AGREEMENT, MORGAN STANLEY HAS AGREED TO COOPERATE WITH THE U.S. DEPARTMENT OF JUSTICE REGARDING MATTERS ARISING OUT OF THE CONDUCT COVERED BY THE SETTLEMENT AGREEMENT. THE SETTLEMENT AGREEMENT CONSTITUTES A FINAL DISPOSITION OF THE POTENTIAL CLAIMS REFERENCED ABOVE.