Morgan Stanley Expected To Soon Resolve Due Diligence Backlog

Posted on February 6th, 2023 at 12:44 PM
Morgan Stanley Expected To Soon Resolve Due Diligence Backlog

From the Desk of Jim Eccleston at Eccleston Law.

Morgan Stanley is expected to resolve an issue pertaining to financial advisors whose client accounts have been recently entangled in a due diligence backlog.

A senior executive at Morgan Stanley recently announced that the company will implement a more efficient reviewing process for new accounts in “relatively short order.” Morgan Stanley informed its advisors in November that they would be required to immediately freeze numerous client accounts for heightened due diligence due to an existing processing backlog of nearly six months. While the new rules were primarily applicable only to international clients, some U.S. clients were flagged for stricter due diligence because of their risk profiles.

Morgan Stanley executives primarily attribute the delays to a lack of capacity for facilitating due diligence, but the company is working to speed up the operational process. While the Morgan Stanley executive was unable to provide an anticipated date of completion, the executive noted that the company is making “good progress.”

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

Tags: eccleston, eccleston law, advisors, law, sec

Return to Archive

TESTIMONIALS

Previous
Next

 


It was really fun seeing you fight for us. You have an amazing way of thinking out of the box.


 

Beth M.

LATEST NEWS AND ARTICLES

February 19, 2026
Wall Street Journal Analysis Questions Investor Gains Following DuPont's Decade-Long Breakup

A Wall Street Journal analysis has raised questions about investor returns following DuPont’s multi-year corporate restructuring, which divided the historic conglomerate into multiple independent companies.

February 18, 2026
American Portfolios Ordered to Pay $4.6 Million in Restitution Over Cash Sweep Program Disclosures

The Financial Industry Regulatory Authority (FINRA) has ordered American Portfolios Financial Services to return $4.6 million to customers and pay monetary sanctions after determining that the firm overcharged investors and failed to properly disclose how it generated revenue through a cash sweep program.

February 17, 2026
FINRA Fines Kingswood Capital Partners $150,000 for Supervisory Failures in GWG L Bond Sales

The Financial Industry Regulatory Authority (FINRA) censured and fined San Diego–based broker-dealer Kingswood Capital Partners $150,000 after finding supervisory failures tied to sales of high-risk GWG L bonds.