Morgan Stanley now requires new international relationships to be worth at least $2m per household for advisers to receive 100% of their payout.
New accounts with less than $2m will be compensated at a 20% rate and enjoy an initial six-month 'grace period.' Relationships established before the new minimum kicked in are being grandfathered in under the old policy, CityWire Americas reports.
International advisers will have to attract larger accounts if they want to get their full paycheck, since the previous threshold was $500,000.
The company has announced plans to merge its international wealth management (IWM) and private wealth management (PWM) businesses in a bid to focus on serving wealthier foreign clients.
Other financial institutions in the US offshore industry have in the past also raised the minimum amount, a move that resulted in new clients for Morgan Stanley. However, the new minimum could force smaller advisers who cannot meet it to consider moving to independent brokerage firms.
The company has said it is still committed to expanding its international business.