Despite the delay of the DoL's fiduciary rule earlier this week, Morgan Stanley
will move forward with planned changes, according to a memo sent to its employees earlier this week.
| James P. Gorman|
Chief Executive Officer
obtained a copy of the memo, which states that the wirehouse will move forward with plans to streamline the number of funds on its platform by 25 percent — down to 2,300 funds. Funds that could get the axe include underperformers or those that fail to comply with the firm's levelized fee arrangements. The firm will also move forward with new commission structures for equities/ETFs, annuities, and UITs in brokerage accounts, expecting that this will lower costs to the client.
Additionally, Morgan Stanley will now require advisors to provide enhanced documentation of conversations with clients regarding rollovers and complex products, including alternatives, annuities, municipal bonds, and structured investments.
The Wall Street Journal also reported on the story.
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