Morgan Stanley plans $500 million technology outlay

Attention likely put on 3D, the combined Morgan Stanley-Smith Barney platform.
JAN 21, 2013
The kludge that has resulted from combining the technology platforms of Morgan Stanley and Smith Barney into a single system, known as 3D, will receive additional attention this year from the fully merged firm, which plans to spend $500 million on technology over the next 18 months. InvestmentNews received a copy of a memo that was sent to all Morgan Stanley Wealth Management Employees on Jan. 23 by the firm's brokerage president Gregory Fleming. In a passage with the subhead “Platform Stability and Functionality,” Mr. Fleming wrote that the firm's most important objective “needs to be ensuring the system works efficiently every day, every time you log on.” System instability has been pointed to as one of the chief irritants experienced and reported by brokers on an ongoing basis over the past year. Mr. Fleming continued: “Clearly this presupposes minimal system slowness, freezing, and error messages.” The additional technology investments would be in addition to “basic running costs” indicating additional development beyond normal operations, according to the document. MSSB spokeswoman Christine Jockle confirmed the spending but declined to comment further. My colleague Andrew Osterland and I have written about the 'teething pains' of the 3D platform for more than a year now. Danny Sarch, founder of Leitner Sarch Consultants Ltd. and a regular contributor to InvestmentNews, has also written about the defections and has cited problems with the technology platform. Related Stories: MSSB's tech 'teething pains' a big headache for brokers Now work really starts at MSSB More teething pains as MSSB completes 3D rollout Causes of tech snafu with MSSB 3D platform remain uncertain Sarch: Behind the defection infection at MSSB MSSB woes now in 3D

Latest News

Modera, Simplicity announce new acquisitions in busy day for industry M&A
Modera, Simplicity announce new acquisitions in busy day for industry M&A

Two RIAs expand their geographic footprints with deals in New York's Capital Region and coastal Alabama.

Advisor moves: Ameriprise, Prospera, Raymond James land teams with $920M in assets
Advisor moves: Ameriprise, Prospera, Raymond James land teams with $920M in assets

A 27-year Merrill veteran, Florida advisors, and a trio of New Jersey advisors just moved to new platforms.

LPL Research launches 17 model portfolios, hitting $100B in AUM
LPL Research launches 17 model portfolios, hitting $100B in AUM

Broker-dealer expands its model portfolio platform with modular building block strategies designed to give advisors greater customization at scale.

Wealth Enhancement adds $592M Chicago-area RIA
Wealth Enhancement adds $592M Chicago-area RIA

The mega-RIA with roughly $160 billion in client assets remains firmly in acquisition mode amid rumors of private equity giants vying to scoop it up.

Annuity sales hit a record as war and Fed jitters redraw fixed income
Annuity sales hit a record as war and Fed jitters redraw fixed income

Record annuity demand for principal protection collides with the most hawkish Fed dissent since 2016.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income