Reporting to chairman and chief executive James Gorman, Nides will focus on Morgan Stanley’s global clients and other "key constituencies" around the world, the firm said in a statement.

He will also work with senior management on issues related to external and government affairs, while serving as a member of the firm’s operating and management committees.

Gorman said Nides will also work on client issues with Morgan Stanley's institutional securities group president, Colm Kelleher, and global wealth management president Greg Fleming.

Nides was COO at Morgan Stanley between 2005 and 2010, before joining the Obama administration as deputy secretary of state.

Before this, he served as president and CEO of Burson-Marsteller, and as chief administration officer at Credit Suisse First Boston, the investment banking division of Credit Suisse, in Zurich.