Morgan Stanley's wealth arm under probe by multiple regulators, WSJ reports
Reuters
Published Apr 11, 2024 02:22PM ET
Updated Apr 11, 2024 07:11PM ET
(Reuters) -Morgan Stanley's wealth management arm is being probed by multiple regulators, the Wall Street Journal reported on Thursday, citing people familiar with the matter.
The U.S. Securities and Exchange Commission, the Office of the Comptroller of the Currency (OCC) and other Treasury Department offices are involved, the report said. The bank's shares fell 4.8% in late afternoon trading to $87.17.
Regulators are assessing whether the bank has sufficiently investigated the identities of prospective clients, the sources of their wealth, and how it monitors their financial activity, the report said.
Some of the probes are also focusing on international clients, the report added.
Morgan Stanley declined to comment. Spokespeople for the SEC, the OCC and the Treasury did not immediately respond to Reuters' requests for comment.
Morgan Stanley's wealth management unit caters to high net-worth individuals and small to medium-sized businesses, providing them with brokerage, custody, investment advisory and financial planning services.
The wealth business generates steadier income compared with investment banking, which is closely tied to economic cycles. Revenues from wealth management have helped Morgan Stanley expand its market capitalization beyond rival Goldman Sachs.
Morgan Stanley recently resolved a years-long investigation into its block trading practices. It also nominated former UK financial regulator Megan Butler to its board of directors.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.