A former employee contacted Finra as a whistleblower, alleging that investment bankers in the program lacked proper licenses and that the bank violated rules meant to protect confidential client information and transactions from mishandling, the report said, citing people familiar with the matter.

The bank recruited the bankers from across Europe two years ago as part of an effort to move jobs offshore and hire cheaper labour, the report added.

The probe is at an early stage, and Finra is inquiring about what kind of work the Budapest bankers were doing, how much contact they had with clients, and how they were supervised, the report said.

Reuters could not immediately verify the report. Morgan Stanley did not immediately respond to Reuters’ request for comment outside regular business hours. Finra declined to comment.