Morgan Stanley has received regulatory approval to buy the 35 per cent stake of a joint venture with Citigroup that it doesn't already own for $4.7 billion.
The deal is expected to close on June 28.
The bank said gaining full ownership of Morgan Stanley Smith Barney Holdings LLC, which operates under the name Morgan Stanley Wealth Management, is one of its key strategic priorities.
Morgan Stanley Chairman and CEO James Gorman says full ownership will help expand its deposit base and offer unique syndication and distribution capabilities.
Morgan Stanley's Wealth Management Group and Citigroup Inc's Smith Barney merged in 2009 during the recession.