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Year-End Brokerage Re-Balancing Orders Did Not Cause Tech Glitch At Morgan Stanley

Eliane Chavagnon

2 January 2014

Morgan Stanley Wealth Management was not hit by a technology issue that reportedly affected the re-balancing of brokerage accounts, a spokesperson told Family Wealth Report

FOX Business, citing an unnamed source familiar with the matter, reported that the technology glitches were caused by a spike in volume due to an influx of year-end re-balancing orders. Morgan Stanley told this publication that the news report was untrue. 

In June of last year, Greg Fleming, who runs Morgan Stanley’s wealth and asset management business, told attendees at the annual Reuters Global Wealth Management Summit that he intends to splash $500 million on technology by the middle of 2014, alongside three other business strategies which will encourage growth through spending .