Middleton, who replaced Tracey Berry, now head of KiwiBank Wealth, in the Westpac role in January 2008, was formerly head of the AXA-owned Spicers advisory group.
PAM was recently created by the listed Pyne Gould group as its new funds management venture, spearheaded by Spicers founder George Kerr.
In August PAM named ex Macquarie NZ executive director, John Duncan, as head of the business.
Westpac has yet to name a replacement for Middleton but it is understood an executive search is underway.
Middleton officially joins PAM at the end of November.
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