05:14 AM EDT, 05/05/2026 (MT Newswires) -- Morgan Stanley (MS) is facing a preliminary investigation from the US Financial Industry Regulatory Authority regarding the type of work a group of the company's Budapest bankers were doing, The Wall Street Journal reported Monday, citing people familiar with the matter.

The probe is focused on the activities and the supervision of a group of Morgan Stanley's bankers in Budapest who began working around two years ago, the unnamed sources told the publication.

A former employee had contacted Finra as a whistleblower, the Journal reported, citing the sources, who alleged that the people involved in the program lacked the proper licenses that work would have needed.

Morgan Stanley breached rules that were meant to protect confidential client information and transactions from being mishandled, the publication reported, citing the whistleblower.

The company and Finra didn't immediately respond to MT Newswires'requests for comment.

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