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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported): October 20, 1999
MORGAN STANLEY DEAN WITTER & CO.
(Exact name of Registrant as specified in its charter)
Delaware 1-11758 36-3145972
(State or other jurisdiction of (Commission File (I.R.S. Employer
incorporation or organization) Number) Identification Number)
1585 Broadway, New York, New York 10036
(Address of principal executive offices including zip code)
Registrant's telephone number, including area code: (212) 761-4000
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Item 5. Other Events
Attached and incorporated herein by reference as Exhibit 99.1 is the
press release dated October 20, 1999 announcing the launch by the Company of
ichoice, an innovative service platform for individual investors that combines
the online and full service businesses of the Company.
Item 7(c). Exhibits
99.1 Press release dated October 20, 1999 announcing the launch by the
Company of ichoice, an innovative service platform for individual investors that
combines the online and full service businesses of the Company.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
MORGAN STANLEY DEAN WITTER & CO.
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Registrant
/s/Ronald T. Carman
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Ronald T. Carman
Assistant Secretary
Date: October 20, 1999
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Index to Exhibits
Exhibit No. Description
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99.1 Press release dated October 20, 1999
announcing the launch by the Company of
ichoice, an innovative service platform for
individual investors that combines the
online and full service businesses of the
Company.
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Exhibit 99.1
Contact: Media Relations
Jon Diat
212-762-7843
MORGAN STANLEY DEAN WITTER COMBINES ONLINE AND FULL SERVICE BUSINESSES IN
INNOVATIVE SERVICE PLATFORM FOR INDIVIDUAL
INVESTORS CALLED ichoice
ichoice to debut tomorrow as industry's first active platform offering investors
a full range of options for their financial relationship
NEW YORK, October 20, 1999 - Morgan Stanley Dean Witter & Co. (NYSE:MWD) today
announced the launch of ichoice, an innovative service platform that enables
individual investors to choose simply and conveniently the financial
relationship that best meets their needs. ichoice unites the products and
services offered by Morgan Stanley Dean Witter's individual securities business,
the Private Client Group, with the pioneering technology and capabilities of the
Company's online business, Discover Brokerage Direct.
As of tomorrow (October 21), Discover Brokerage will be renamed Morgan
Stanley Dean Witter Online Inc., and its online services will be available to
investors through an integrated Web site, www.msdw.com. With one click of a
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mouse, investors have the choice of self-directed investing online or a
traditional, full-service advice channel with the flexibility to trade online.
Speaking at a press conference held at the Company's New York headquarters,
Philip J. Purcell, Chairman and CEO, and John J. Mack, President and COO, said:
"ichoice is being launched in recognition of the evolving financial needs of our
clients. Clients can now choose the type of financial services relationship
that best meets their needs, and can conduct their financial business as they
see fit - with the personal guidance of a financial advisor, on a self-
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directed basis, online, or over the phone. This flexibility will be provided
through a single source, leveraging the unique and diverse set of capabilities
within Morgan Stanley Dean Witter's existing full service and online
businesses."
"The ichoice platform is based on our longstanding tradition of putting
clients' interests first, and reflects our philosophy of 'measuring success one
investor at a time,'" Mr. Purcell and Mr. Mack said.
Morgan Stanley Dean Witter clients who value the advice of a financial
advisor and would also like the capability to trade online will have access to
an enhanced Morgan Stanley Dean Witter Choice(SM) account. This account offers
virtually unlimited transactions and a complete array of services for a single,
asset-based fee, with the rate decreasing as asset size increases (see
attachment). With the Choice account, clients may choose to place trades
through their financial advisor, or online using ClientServ,(SM) Morgan Stanley
Dean Witter's proprietary online service.
Self-directed investors who wish to make investment decisions independently
and to execute trades online or over the telephone may continue to do so. Such
investors will have the added convenience of access to Morgan Stanley Dean
Witter's 450 locations across the United States, including investment and client
education centers, to open accounts, deposit funds, process paperwork and obtain
product information.
Morgan Stanley Dean Witter Online offers a variety of services and products
that emphasize flexibility for investors, including extended hours trading,
wireless trading, real time municipal and treasury bond trading, and real time
account updating. Fees for most equity trades executed through Morgan Stanley
Dean Witter Online over the Internet or by touch tone phone will be $29.95 per
trade.
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Investors who wish to continue the traditional full-service relationship
which includes client-tailored, professional advice from a financial advisor and
a traditional, transaction-based commission structure, may continue to do so.
Morgan Stanley Dean Witter has over 12,000 highly trained financial advisors,
supported by an award-winning research team. Morgan Stanley Dean Witter's
leadership position in investment banking allows the firm to provide investors
with access to high quality equity offerings, as well as domestic and
international debt offerings. Additionally, top-ranked asset management
capabilities allow the firm to offer investors access to the Morgan Stanley Dean
Witter Family of Funds, Van Kampen Funds, and other highly regarded fund
families, as well as a comprehensive range of investment products and services.
James F. Higgins, President and COO of the Private Client Group, noted that
"The ichoice platform leverages our Company's diverse strengths, combining the
powerful resources and skills of our Private Client Group with our Company's
cutting edge technology and experience in online services. Morgan Stanley Dean
Witter financial advisors will be able to help investors choose the type of
account and pricing model that best meets their investment needs. Helping
clients to navigate a broader array of choices in terms of products and pricing
will become an additional aspect of 'client-tailored advice,' while the addition
of Discover Brokerage's trading platform and technology will be a tremendous
advantage in our ability to help clients achieve their financial goals."
"The transition to Morgan Stanley Dean Witter Online allows us to provide
our customers with better products, increased access and improved services under
the powerful brand name of Morgan Stanley Dean Witter," said Thomas J.
O'Connell, President of Morgan Stanley Dean Witter Online. "We're confident
that self-directed investors will recognize the value of ichoice - including the
convenience of over 450 Morgan Stanley Dean Witter locations - and will continue
to use our pioneering technology to help them achieve their investment goals."
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In 1997, Morgan Stanley Dean Witter laid the strategic groundwork for this
initiative with the acquisition of Lombard Brokerage, Inc., which was
subsequently renamed Discover Brokerage Direct. Established in 1992,
Lombard/Discover Brokerage was one of the first financial institutions to offer
investing over the Internet and was the first securities firm to process an
automated, online trade. Discover Brokerage is the only online firm to win a
Barron's four star rating four years in a row and is currently ranked as the
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number one overall online broker by SmartMoney. In addition, the company earned
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a top five-star ranking in Kiplinger's 1999 survey of online brokerages.
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Mr. Higgins added: "On October 21st, Morgan Stanley Dean Witter will be
the only securities firm that can offer investors a unique combination of
financial advice and expertise, technology and experience in online investing,
and content in terms of investment products and services. ichoice will be our
competitive advantage in being the advisor of choice for the individual
investor."
Morgan Stanley Dean Witter & Co. is a global financial services firm and a
market leader in securities, asset management, and credit services. The Company
has offices in New York, London, Tokyo, Hong Kong and other principal financial
centers around the world and has over 450 securities branch offices throughout
the United States.
See Attachments
Access this Press Release online @ www.msdw.com
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Morgan Stanley Dean Witter, ichoice, and Choice are service
marks of Morgan Stanley Dean Witter & Co. ClientServ is a service mark of
Dean Witter Reynolds Inc.
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MORGAN STANLEY DEAN WITTER
Fact Sheet
ichoice(SM)
ichoice:
. Is an innovative new service platform for individual investors which allows
them to choose simply and conveniently the way they conduct their financial
services business. Investors can select from the following service
relationships:
- Traditional, full service
- Fee-based Morgan Stanley Dean Witter Choice(SM) account
- Self-directed Morgan Stanley Dean Witter Online account
. Combines the extensive services and products offered by Morgan Stanley Dean
Witter's individual securities business, the Private Client Group, with the
proven Internet technology and capabilities of the Company's online
business, formerly known as Discover Brokerage Direct
. Is built upon our long-standing tradition of putting our clients' interests
first, and is the culmination of our philosophy of "success one investor at
a time"
. Offers investors a full range of choices within one source to achieve one
set of financial solutions
ichoice benefits:
. Leverages Morgan Stanley Dean Witter's vast resources and capabilities to
offer investors the flexibility to select the financial service
relationship that best meets their individual needs and preferences
. Offers investors the best of all possible worlds - unparalleled resources
and proven experience in both traditional and Internet financial services
. Accounts can be opened online, over the phone or through any of Morgan
Stanley Dean Witter's 450 branch offices across the United States
ichoice service relationships:
. Traditional full service: Individuals may continue to select the
traditional full-service relationship that includes personalized,
professional advice from a Financial Advisor and transactions on a
per-trade basis. Through additional service enhancements, eligible
full-service clients will be able to view their account and other valuable
information through ClientServ(SM), our proprietary online service, at no
additional charge
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MORGAN STANLEY DEAN WITTER
. Morgan Stanley Dean Witter Choice(SM): Investors who want a full-service
relationship as well as fee-based pricing and the flexibility to trade
online can select a Morgan Stanley Dean Witter Choice account. This account
offers the ability to place virtually unlimited* transactions in a
variety of securities for a fee based on eligible account assets. Under the
Morgan Stanley Dean Witter Choice Account, clients have the freedom to
place trades through their Financial Advisor or online through
ClientServ(SM), as well as the convenience of being able to track their
portfolio online. (Please note: a minimum of $50,000 in eligible assets is
necessary to open this account)
. Morgan Stanley Dean Witter Online: Self-directed investors who wish to make
decisions independently, without professional advice, may open a Morgan
Stanley Dean Witter Online account and execute transactions on their own
for a set fee per trade. Trades may be executed using the Internet,
touch-tone telephone, wireless organizer, or through a call center
Access to Our Exclusive Online Service:
. Whether clients choose a traditional or fee-based service relationship,
they can have access to ClientServ(SM), our proprietary online service, at
no additional charge**
. ClientServ(SM) is a cutting-edge Internet technology service that allows
clients to view and track their accounts online, anytime, from the comfort
of their own home. Clients can access their total account value, a
breakdown of all assets, and a complete summary of account activity, as
well as view account statements online. Active Assets Account(R) clients
also have the option of using the BillPayment service to pay bills
electronically
. In addition, through ClientServ(SM) clients can access real-time quotes on
any stock, create a customized personal portfolio monitor or chart the
performance of specific securities over time. Other features include
up-to-the-minute business news from both Dow Jones News and CNBC/Dow Jones
business video. Choice, Active Assets Accounts and eligible IRA accounts+
can also view Morgan Stanley Dean Witter research reports online
. Choice account clients also have access to online trading
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* Morgan Stanley Dean Witter Choice is not for day trading or other extreme
trading activity, including excessive options trading or trading in mutual
funds based on market timing.
** ClientServ is available to all Choice accounts and Active Assets Accounts
regardless of the amount of assets held in the account. There is a $50,000
minimum asset requirement for IRAs and certain other accounts.
+ There is a $100,000 minimum asset requirement for IRAs to access research.
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MORGAN STANLEY DEAN WITTER
Annual Fees for Enhanced Choice Account
Mutual Fund/Fixed
Account Asset Level Equity Nominal Income Nominal
From 0-$99,999 2.25% 1.00%
Next $150,000 2.25% 1.00%
Next $250,000 1.75% 1.00%
Next $250,000 1.25% 1.00%
Next $250,000 1.25% 0.75%
Next $1,000,000 0.90% 0.75%
Next $1,000,000 0.85% 0.50%
Next $2,000,000 0.85% 0.50%
Next $5,000,000 0.50% 0.50%
$10,000,000 and over 0.30% 0.50%
Important Components of the Enhanced Choice Pricing Policy
. Please note that a $1,000 minimum account fee applies
. Please note that the Financial Advisor has the flexibility, when
determining the fee, to make an assessment based on the mix of assets in
the client's portfolio and the services to be provided to the client
Additional information is available on our Web site at www.msdw.com.
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MORGAN STANLEY DEAN WITTER
Morgan Stanley Dean Witter Online
Recently Launched Products and Services
. Access to Morgan Stanley Dean Witter branches - Investors can apply to open
accounts, deposit funds, take care of paperwork and pick up product
information in over 450 Morgan Stanley Dean Witter branches throughout the
United States
. Electronic funds transfer - Customers can have funds automatically
transferred from their bank or other institution to their Morgan Stanley
Dean Witter Online brokerage account
. Direct payment to a Platinum Discover Card - Customers can pay their
Platinum Discover Card bill directly from a Morgan Stanley Dean Witter
Online brokerage account
. Extended hours trading - Through MarketXT(TM), investors can make real-time
trades of approximately 200 widely held stocks of the NYSE and Nasdaq after
the closing bell
. Wireless trading - Through TradeRunner(SM), a wireless investing service,
customers can manage their portfolios any time, anywhere on a Palm III(TM)
organizer
. IPO center - Qualified customers may have access to certain Morgan Stanley
Dean Witter-underwritten IPOs, secondary offerings and fixed income
offerings
. Real-time municipal bond trading - Customers can buy or sell municipal
bonds at their convenience with real-time execution, 24x5
Industry Recognition
. Best overall online brokerage - Kiplinger's (1999)/1/
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. Top rating of four stars - Barron's (1996, 1997, 1998, 1999)/2/
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. Top-tier broker - Consumers Digest (1999)/3/
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. Best overall online brokerage - SmartMoney (1998)/4/
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Industry Firsts
. Wireless trading on the Palm III(TM) organizer
. 24x5 trade execution for municipal bonds and U.S. Treasuries
. Java-based applications for brokers
. Real-time intraday charting over the Internet
. Fully automated trading of stocks and options
. Fully automated access to real-time quotes and graphs
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/1/ Kiplinger's, November 1999.
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/2/ Used by permission of Barron's. (C) Dow Jones & Company, Inc. All Rights
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Reserved.
/3/ Consumers Digest, July-August 1999.
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/4/ SmartMoney February 1998 report of their survey of 12 online brokers.
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SmartMoney is a registered trademark of The Hearst Corporation and Dow
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Jones & Company, Inc.
4 Continued...
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MORGAN STANLEY DEAN WITTER
Morgan Stanley Dean Witter Online Pricing - Equities
Electronic trades (includes Internet, $29.95 per trade*
TradeRunner(SM)and Touch-Tone Phone)
Broker-assisted trades $39.95 per trade*
* Applies to both market and limit orders for up to and including 1,000
shares. For orders over 1,000 shares,electronic trades are 3 cents/share;
trades conducted with the assistance of a registered representative are 4
cents/share.
Morgan Stanley Dean Witter Online Products & Services
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<CAPTION>
Products Services
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. Equities . Extended Hours Trading
. Options . Wireless trading
. Mutual funds . Morgan Stanley Dean Witter analyst research
. Money market funds . Access to 450+ Morgan Stanley Dean Witter branch offices
. Municipal bonds . Direct payment to a Platinum Discover Card
. Treasury bills,notes,bonds,strips . Zacks and Thomson market research and news
. Blue Chip Basket (purchase of 10 . Reuters and MSNBC news (video and audio)
selected equities for flat $49.95 . Microsoft(R) Money(TM) and Quicken(R) compatible
commission price) . Check writing and money market funds
. IPOs (for qualified customers) . Electronic funds transfer
. IRAs
. The Wall Street Journal Guide to Understanding Money & Investing
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. Interactive calculators
. Real-time quotes and graphs
</TABLE>
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Morgan Stanley Dean Witter, ichoice, and Choice are service marks of Morgan
Stanley Dean Witter & Co. Services are offered through Dean Witter Reynolds Inc.
and Morgan Stanley Dean Witter Online Inc., members SIPC. Active Assets
Account is a registered service mark and ClientServ is a service mark of Dean
Witter Reynolds Inc. TradeRunner is a service mark of Morgan Stanley Dean Witter
Online Inc.
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