Jun. 25--Wall Street wheeling and dealing is being felt on the local financial advisory scene.

Earlier this month, Morgan Stanley and Citi announced the completion of a deal that links their wealth management arms. The new joint venture, Morgan Stanley Smith Barney, will have more than 18,500 financial advisers and some $14 billion in net revenues, according to a news release. As of last October, Smith Barney was the sixth-largest investment brokerage firm in Knoxville, as measured by registered representatives.

The companies announced the closing of the deal on June 1.

'Now, more than ever, investors need advisers they can trust,' Charles Johnston, president of Morgan Stanley Smith Barney, said in a statement. 'And the entire team at Morgan Stanley Smith Barney is ready to help our clients navigate these challenging markets.'

In an e-mailed statement, a Citi spokeswoman said the new firm will have approximately 50 employees in Knoxville, including 31 financial advisers.

'Clients will continue to receive seamless service from their existing financial advisers,' according to the statement, 'and over time, they will benefit from the integration of these two businesses by being able to access the new and exclusive financial products and services, as well as the best market intelligence and investment opportunities available.'

In Knoxville, the move marks the latest shift in an industry that has been in flux in recent months. Last August, for example, a group of financial advisers that includes Andy Venable left UBS to join Smith Barney, which was a unit of Citi. That team, which included Ryan Kelly and Lance Pruitt, produced commissions and fees of about $2.4 million and managed prior assets of about $310 million, according to Dow Jones.

Also in August, a group led by prominent local advisers Dugan McLaughlin and Patrick Roddy left UBS for Merrill Lynch, joining the latter firm's private banking and investment group on Aug. 18.

More recen

tly, a Kentucky firm has picked up some advisers from competitors. Brian Donaldson, branch manager for Louisville-based Hilliard Lyons, said last week that four Smith Barney advisers have joined his firm since the beginning of March, plus another from Merrill Lynch.

'They found that Hilliard Lyons just offered a different model and ... they thought a model that would be very attractive to their clients also,' Donaldson said. Louisville-based Hilliard Lyons was the ninth-largest investment brokerage firm in Knoxville as of last fall.

Business writer Josh Flory may be reached at 865-342-6994.

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