Financial giant Morgan Stanley is to create 600 jobs as part of a major expansion of its operation in Scotland, it was announced yesterday.
Financial giant Morgan Stanley is to create 600 jobs as part of a major expansion of its operation in Scotland, it was announced yesterday.
The move will see the firm expand its global wealth management support services and almost double its workforce in Glasgow to nearly 1400 over the next four years.
The expansion is being backed by a £6m Regional Selective Assistance (RSA) grant from the Scottish Executive and First Minister Alex Salmond said the announcement was a huge vote of confidence in Scotland as a financial centre.
He said: "It is a signal of the potential of Morgan Stanley in Scotland and it's also a signal of Scotland's potential in the financial services."
David Nicol, chief administrative officer of Morgan Stanley in Europe, said the new jobs would be "high-skilled" posts for managers, financial analysts and IT workers. "This announcement is further evidence of our long-term commitment to both Glasgow and Scotland," he added.
"We believe strongly that Morgan Stanley's success as a financial service firm is directly related to our ability to recruit, develop and retain top-calibre people.
"We are very much looking forward to continuing a productive and fruitful relationship both with Glasgow and Scotland."
Morgan Stanley first moved to Glasgow eight years ago and has built up the workforce to 770. Once the new posts are in place, the firm's Glasgow operation will be its second-largest European office behind its London headquarters.
Mr Salmond said he was "delighted" the executive was able to provide financial assistance for Morgan Stanley's expansion plans. "That is exactly what the RSA should be about," said the First Minister. The RSA payments will be made in instalments over several years. Mr Salmond said yesterday's announcement represented a significant boost for Scotland's already buoyant finance sector.
He said: "The financial sector is one of the long-standing growth industries in Scotland and it has been hugely strong in investment banking and pension funds over the years.
"Morgan Stanley offers a growing aspect that is moving into Scotland's financial sector and makes our portfolio of skills all the greater and broadens the base of the financial sector.
"We are nowhere near the full potential of our financial sector as yet. The ambition of companies like Morgan Stanley is matched by the ambition of Scotland to have an economy that is in the fast lane of growth."
Steven Purcell, leader of Glasgow City Council, said the announcement demonstrated Morgan Stanley's commitment to the city.
He said: "Our aim is to help everyone share in Glasgow's success and get everyone into work, and these jobs help support this goal.
"Morgan Stanley is already a major player in the city and we know the company has chosen to expand here because of the quality of the business infrastructure and the availability of staff with the right range of skills. This can only boost our international reputation."
Derek Brownlee, Tory finance spokesman, said SNP MSP Alex Neil had complained in 2006 when another big financial services firm, HSBC, received a £1m executive grant for a project creating 250 fund management jobs.
He said: "I am slightly surprised to see the SNP so enthused, given that Morgan Stanley has received an RSA grant of £6m.
"When HSBC received £1m in February 2006, the SNP weren't very happy at all.
"How can they reconcile themselves with a grant six times that amount?"
