Fed, OCC Approve Morgan Stanley's Section 23A Exemption

Bank's request for exemption granted to facilitate internal corporate reorganization.

Mar. 27, 2026 at 8:12am

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The Federal Reserve Board and the Office of the Comptroller of the Currency (OCC) have approved a request by Morgan Stanley Bank, N.A. in Salt Lake City, Utah for an exemption under Section 23A of the Federal Reserve Act. This will allow the bank to engage in an internal corporate reorganization involving its affiliate, Morgan Stanley Europe SE, in Frankfurt, Germany.

Why it matters

Section 23A establishes limits and requirements on a bank's transactions with its affiliates. Granting this exemption indicates regulatory approval for Morgan Stanley to restructure its operations across its domestic and international divisions.

The details

Morgan Stanley Bank, N.A. submitted the request in order to facilitate an internal corporate reorganization involving its affiliate, Morgan Stanley Europe SE. The Federal Reserve Board and OCC have now made the joint findings required to approve this exemption under Section 23A of the Federal Reserve Act.

  • The Federal Reserve Board announced the approval on March 27, 2026.

The players

Morgan Stanley Bank, N.A.

A bank subsidiary of Morgan Stanley located in Salt Lake City, Utah.

Morgan Stanley Europe SE

An affiliate of Morgan Stanley Bank, N.A. located in Frankfurt, Germany.

Federal Reserve Board

The central banking system of the United States that made the joint findings required to approve the exemption.

Office of the Comptroller of the Currency (OCC)

The federal agency that approved Morgan Stanley Bank, N.A.'s request for the exemption under Section 23A.

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The takeaway

This exemption granted by regulators allows Morgan Stanley to more freely reorganize its corporate structure and operations between its domestic and international divisions, indicating regulatory approval for the bank's internal restructuring plans.