Morgan Stanley Smith Barney is raising its recruiting deal for top-producing financial advisors, Dow Jones has reported, citing unnamed sources.

The retail brokerage joint venture will offer top-tier advisers from its competitors up to 330 per cent of their annual production to join the firm, an increase from a previous offer of 230 per cent to 250 per cent. The move brings the firm's offer in line with the deal offered by its top competitor--Merrill Lynch Global Wealth Management, a unit of Bank of America.

A Morgan Stanley Smith Barney spokeswoman said, "Our recruiting is competitive with everyone else's on the Street," but declined to comment further, the news agency said.

The remuneration changes show how retail brokerages are battling harder than ever to attract top talent to build and hold market share in the wake of the financial turmoil.

The deal will offer advisors in the top quintile a 140 per cent payment upfront, with additional bonuses for asset and production growth.

Morgan Stanley has completed its joint venture with Citigroup’s Smith Barney brokerage business in May. The BoA takeover of Merrill Lynch, meanwhile, has created the world’s biggest wealth management firm of its type.

Morgan Stanley Smith Barney has a total brokerage force of 18,160, the report added.