Citi and Morgan Stanley yesterday agreed to merge their wealth management operations, but the banks said there will not be any immediate changes to the Citi Smith Barney Australia business.
"There is going to be no immediate changes," a Morgan Stanley spokesperson said.
"Smith Barney Australia will become part of the joint venture. It will continue to operate and we are looking to grow our business globally and there will be no immediate changes."
The unit is currently led by Tom Burns and employs around 175 brokers and financial advisers.
Under the deal, the Citi-owned Smith Barney US, Citi Smith Barney Australia and Quilter units will merge with Morgan Stanley Global Wealth Management.
Morgan Stanley will pay Citi $4.05 billion in upfront cash and control 51 per cent of the joint venture, with Citi retaining the rest.
The venture will be called Morgan Stanley Smith Barney and will have over 20,000 financial advisers who manage $2.25 trillion in client assets and generate $22.37 billion in pro-forma combined revenue.
The joint venture will have $4.2 billion in combined pre-tax profit and cater to 6.8 million client households globally. It has a strong presence among high net-worth clients and over 1000 offices worldwide.
Morgan Stanley co-president James Gorman will serve the new company as chairman, while Citi's Global Wealth Management US and Canada president Charles Johnston will serve as president.
Gorman said this combination will offer the group's talented financial advisers the best possible platform and resources, as well as exciting new opportunities for growth and development.
Additional senior management will be drawn from the ranks of both companies.
Citi and Morgan Stanley's 20,000-plus financial advisers compares to Bank of America's force of nearly 17,000.
