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

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