Morgan Stanley at Work, a subsidiary of Morgan Stanley, has agreed to acquire American Financial Systems (AFS), a non-qualified deferred compensation plan provider, for an undisclosed price.

American Financial Systems caters to employers of all sizes with supplemental executive benefit plan solutions and services. The company was established in 1986.

Its plans are said to provide an additional method to save for retirement or other long-term savings requirements, on a tax deferred basis. These, in turn, are claimed to play an important role in an employer’s efforts to hire, retain, and reward executives who are valuable.

The acquisition of American Financial Systems will add to the workplace offering spectrum of Morgan Stanley. The latter’s offerings range from executive services, guidance and implementation of retirement plans, to equity compensation and financial wellness.

Morgan Stanley at Work head Brian McDonald said: “Attracting, retaining, and motivating top talent is a top priority for our clients and their organisations.

“In response, deferred compensation plans have grown in popularity as plan sponsors increasingly explore new practices to round out their compensation structures. Combining AFS with our workplace offering along with the proficiency of our Financial Advisors creates a powerful value proposition for plan sponsors and their participants.”

The deferred compensation plan offerings of American Financial Systems include plan design consulting, plan implementation and online enrollment, funding analysis and optimisation, and client management and plan recordkeeping.

Morgan Stanley Wealth Management COO Jed Finn said: “The workplace is a key story to watch over the next five years in the wealth management industry.

“It is the single most important source of wealth creation, and at Morgan Stanley we have been hard at work creating an end-to-end integrated offering where we can help plan participants reach their financial goals and corporations manage the full spectrum of their financial wellness, equity, and now with the addition of AFS, deferred cash offerings.”

The deal is anticipated to close during Fall 2022, said Morgan Stanley at Work, which provides workplace financial solutions.