By Jessica Toonkel and Jennifer Hoyt Cummings
NEW YORK (Reuters) - Morgan Stanley Smith Barney has increased the number of Facebook Inc IPO shares it will allow advisers to allocate to each client account.
The firm previously set a cap of 500 shares per retail client, but told advisers late on Thursday afternoon it increased the limit to 5,000 shares, according to two sources familiar with the situation, who declined to be named because they are not permitted to speak to the press.
A Morgan Stanley spokeswoman declined to comment.
A Morgan Stanley Smith Barney adviser based in the northeast said he was not surprised that the 500 share cap was lifted.
"We knew that wasn't going to last," the adviser said. "We have too many wealthy individuals for whom 500 shares wouldn't have an impact."
(Editing by Gary Hill and Andre Grenon)