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Morgan Stanley to Move FA Clients from Quarterly to Monthly Billing

By Alex Padalka May 17, 2019

In a bid to simplify its processes, Morgan Stanley has opted to shift its financial advice clients from quarterly to monthly billing, starting next year.

The company opted to make the change after deliberating on it over the past year, including weighing its benefits and requirements and taking input from advisors, according to a memo to Morgan Stanley Wealth Management staff reviewed by FA-IQ.

Switching to monthly billing is expected to help advisors because it allows for more accurate alignment of client account performance and the advisor’s fee, Vince Lumia, head of field management, and Ben Huneke, head of investment solutions, say in the memo. It’s also simpler to handle, with client fees getting calculated from their balance at the end of the prior month, they say. Clients also stand to gain from the switch as monthly billing offers more consistence, simplicity and clarity, according to the memo.

The change goes into effect only in the first quarter of 2020, however, as the firm anticipates the process to implement it to take some time, Lumia and Huneke say. Morgan Stanley intends to notify its clients within 60 days of the change, according to the memo.

AdvisorHub first reported on the switch.