WASHINGTON, Dec 9 (Reuters) - U.S. Securities and

Exchange Commission said on Monday that it charged Morgan

Stanley Smith Barney for policy deficiencies that resulted in

failure to prevent and detect its financial advisers' theft of

investor funds.

Morgan Stanley Smith Barney, a unit of Morgan Stanley ( MS )

, agreed to pay a $15 million penalty and accept certain

undertakings to settle the charges, the SEC said.