Morgan Stanley Tweaks Greenback-Value Investing Program in Advisory Accounts

Morgan Stanley has adjusted its dollar-cost-averaging program in advisory accounts to provide prospects an extended funding window and alter the place their idle money is held, in accordance with an up to date regulatory brochure filed on Wednesday. 

The wirehouse has doubled the utmost interval over which purchasers can dollar-cost common into the market to 1 yr from six months. 

Beginning within the first quarter subsequent yr, money set for averaging might be invested in a cash market fund chosen by the consumer or monetary advisor quite than defaulting to a sweep car or Morgan Stanley’s financial institution deposit program. 

The adjustments handle advisor and buyer calls for round money administration, in accordance with an individual accustomed to the change. 

The dollar-cost-averaging program invests money at common weekly or month-to-month intervals quite than requiring a big sum to be invested instantly. It’s accessible in Choose UMA accounts which have already been absolutely invested. 

Underneath the brand new association, mutual fund shares might be bought off at scheduled intervals to make purchases. Morgan Stanley’s brochure warned that funds could cost redemption charges. 

Morgan Stanley will proceed to incorporate uninvested money in charge calculations for the advisor program.

Money sweep applications have drawn scrutiny industry-wide in recent times over low yields paid on uninvested balances. The agency raised pay on money in advisory accounts in 2024. The SEC closed its evaluate of Morgan Stanley’s program in March 2025 with out recommending enforcement motion, though consumer litigation and state regulatory inquiries persevered.

Like this text? Let AdvisorHub come to you!  Join