The notice given today by Morgan Stanley initiates a process of up to 90 days to determine the purchase price, as detailed by the terms of the MSSB joint venture established in 2009.

The terms outlined that Citi would exchange 100 per cent of its Smith Barney, Smith Barney Australia and Quilter units for a 49 per cent stake in the venture and an upfront cash payment of $2.7 billion. Meanwhile, Morgan Stanley exchanged 100 per cent of its global wealth management business for a 51 per cent stake in the joint venture.

The deal gave Morgan Stanley and Citi various purchase and sale rights after year three, but stated that Citi would “continue to own a significant stake in the joint venture at least through year five.”

Regulatory approval for Morgan Stanley to increase its stake has been approved, the firm said. A “current report” on an 8-K form will also be filed, describing the process to determine the price, it added. Companies must file an 8-K form with the SEC whenever a major event occurs that shareholders should know about.

Morgan Stanley “does not intend to make any further comment on the purchase until the price is determined.”