Morgan Stanley Smith Barney is dialing down its recruiting dollars this year, according to Charlie Johnston, the firm’s president.

"We're at a point in time where the economics in recruiting have been off the charts. So you'll see us weighted more toward new associates and fewer recruits," Johnston said in an interview with Reuters yesterday.

Morgan Stanley Smith Barney's brokerage force will fluctuate between 17,500 and 18,500 advisers, Johnston said.

Just to stay at that level, the wirehouse is expected to recruit and train at least 1,800 people each year.

Johnson acknowledged ongoing attrition at brokerage firms, noting that it is a good year when a firm needs to replace only 10 per cent of its brokers.

"We're always in the hiring business," he said.

The firm is also expanding an "advisor associate" program that matches recent college graduates with veteran brokerage teams.