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Morgan Stanley to Launch a Wealth Management Unit in Canada

Zacks Equity Research

Morgan Stanley MS plans to launch a full-service wealth management unit in Canada with an aim to bolster the existing services it provides to the country. The plans are subject to regulatory approval.

The new unit, Morgan Stanley Wealth Management Canada, will be part of Shareworks by Morgan Stanley that administers stock plans for employees and executives at Canadian companies. Also, it has partnered with Canaccord Genuity as its deployment partner for the business.

The move will expand the services Morgan Stanley currently provides in Canada, which include full-service and virtual financial advisors, a discount self-directed investing solution and online investment management.

“Morgan Stanley’s leading U.S. wealth management platform has over $2.4 trillion in assets under management and is supported by more than 15,000 financial advisors. We’re excited to expand our wealth management footprint into Canada with a solution that’s tailored to the Canadian market,“ said Laura Adams, head of institutional distribution in Canada and Morgan Stanley Wealth Management Canada.

Morgan Stanley has been providing services in Canada since 1960 and has offices in Toronto, Calgary, Vancouver and Montreal, where it employs more than 1,500 Canadians.

The company has of late taken measures to bolster its wealth management business. In February, it entered into an all-stock acquisition deal with Arlington, VA-based E*TRADE Financial ETFC, per which the former will acquire the latter for $13 billion.

On completion of the deal, Morgan Stanley will be well positioned as a leader in the Wealth Management industry across all channels and wealth segments, with significant increase in the scale and breadth of its franchise.

Our Take

Focus on corporate lending operation and strength in investment management operations continues to support Morgan Stanley’s top-line growth. However, near-zero interest rates and elevated expenses are other major near-term concerns.

Shares of the company have depreciated 19.3% over the past six months compared with the 21.2% decline recorded by the industry.


The company currently carries a Zacks Rank #4 (Sell).

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