Report - Morgan Stanley sales incentives raises questions

Morgan Stanley HQ

Morgan Stanley appears to have promoted conflicts of interest in a questionable sales contest that pushed some of their riskiest loans on their richest clients, The New York Post has learned.

The newspaper reports that the firm, which has expanded its buttoned-up wealth management division since the 2008 financial crisis, created a pilot program that divided financial advisers into “teams” and offered them financial incentives for selling securities-based loans — one of the firm’s biggest money makers, according to a source and e-mails obtained by The Post.

Those loans are a major profit center for the bank. In 2015, company-wide sales of so-called SBLs jumped by 31%, to $25bn, Gorman said in a January 2016 presentation.

Morgan Stanley, through a spokeswoman, insisted the program was “extremely limited” and didn’t pay out cash — but instead deposited “credits” to a special account that could be used for “qualifying business expenses,” like marketing.

To access the complete New York Post article hit the link below:

Morgan Stanley sales contest raises conflict of interest concerns

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