April 11 (Reuters) – Morgan Stanley’s (MS.N), opens new tab wealth management arm is being probed by multiple regulators, the Wall Street Journal reported, opens new tab 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.
Source: REUTER
