Morgan Stanley Wealth Management's profits have slipped 26.5% lower than the firm's target range. As a result, Morgan Stanley is considering various measures to cut costs as well as raising the bar for its financial advisors.
According to AdvisorHub, the company is evaluating the possibility of implementing a mandatory minimum annual production level for its financial advisors. This move may lead to a reduction in headcount. Morgan Stanley executives told sources that cost-cutting reductions would not affect recruiting budgets or other critical sources of growth at its brokerage business. Morgan Stanley reportedly is seeking to address cost pressures additionally by consolidating offices and trimming some of its technology expenses.
Overall, Morgan Stanley beat expectations in the first quarter despite a slowdown in dealmaking and rising loan-loss provisions.
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