Morgan Stanley told Citigroup it plans to acquire an additional 14% stake in their Morgan Stanley Smith Barney brokerage joint venture, a long-awaited step that will bring the securities firm closer to full ownership of the business.

Morgan Stanley, which owns 51% of the venture, said that on Friday it intends to notify Citi it is exercising its right to purchase the stake. Under terms of the deal - struck in 2009 when both banks were coping with the fallout of the financial crisis - Morgan Stanley has the option to acquire Citi's stake in increments between 2012 and 2014.