The broker attrition at Morgan Stanley Smith Barney is slowing down, according to Charles Johnston, its president and chief operating officer, according to an interview by Investment News.

Since the end of July, “attrition is back to 2006 levels,” Mr Johnson told the publication.

MSSB was formed out of a joint venture between Morgan Stanley, the Wall Street investment bank, and Citigroup’s Smith Barney brokerage business. The move comes as Bank of America has created a large wealth management business via its acquisition – completed at the start of this year – of Merrill Lynch.

MSSB suffered a net drain of $8.8 billion in assets during the third quarter, the report said. However, this the loss was simply “the residual effect” from broker defections, Mr Johnston said, because it takes several months to transfer accounts.

Since June, when Morgan Stanley and Smith Barney officially combined forces, the joint venture lost 284 reps, ending September with 18,160 producers who managed $1.5 trillion in client assets, the report added.