Morgan Stanley plans to increase its wealth management capabilities by combining its private banking arm with Citi Family Office, which became part of Morgan Stanley Smith Barney under its joint venture with Citigroup. The move will see a large rise in Morgan Stanley's overall wealth management employment base.

Brought together under the Morgan Stanley Private Wealth Management name will be 500 financial advisors when Citi Family Office is re-branded under the Morgan Stanley name. 

The businesses will be headed up by Michael Armstrong, managing director of Morgan Stanley Private Wealth Management.

“Our new, enlarged organization will give us even more resources that we can bring to bear as strategic partners for our clients," said Mr Armstrong.

In the US, Mr Armstrong will work alongside Andy Saperstein, managing director and head of Morgan Stanley Smith Barney's broader wealth management business. 

"By strengthening the partnership between Morgan Stanley Private Wealth Management and Morgan Stanley Smith Barney's Financial Advisors, we will present an exceptional value proposition to our wealthiest clients," Mr Saperstein said.

In a separate report by Reuters, a company spokesperson, Christy Pollak, said Morgan Stanley is hoping to increase its Private Wealth Management unit's employee base 40 percent over the next three to five years.