Fidelity Investments in the

US has tapped one of Morgan Stanley Global Wealth Management Group’s former top leadership to head its independent advisory partnering business that has custody over $335 billion in client assets.

Michael Durbin, the former chief operating officer of Morgan Stanley’s GWM national sales division, will lead a management team at Fidelity’s Institutional Wealth Services business from early 2009 as president.

The division of the largest mutual fund manager in the country provides trading, custody and brokerage services to registered investment advisors and has grown the assets it presides over by 90 per cent in the last three years, according to the firm.

"Mike's experience in global wealth management, both at the advisor and high-net-worth investor levels, combined with his leadership and passion for client service, make him the right executive to further the significant momentum we have established in recent years,” said Michael Clark, Fidelity Institutional Products Group president.

Mr Durbin will report to Mr Clark and will replace John Callahan, who will be promoted internally within the group’s personal and workplace investing division.

Mr Durbin was with Morgan Stanley for 18 years and in his most recent leadership role at the firm was responsible for marketing, business development, field sales and marketing, infrastructure prioritisation, and investment strategy for Morgan Stanley's 8,000

US financial advisors.

"Mike will lead a talented management team that will continue its focus on delivering advisors the industry-leading technology, product and service solutions they need to position themselves for long-term success," said Mr Clark.

Fidelity Institutional Wealth Services reported in September it custodies more than $335 billion in assets on behalf of 3,500 mainly RIA firms.

Meanwhile, Fidelity International, a separate entity, is to axe one in seven of its staff after falling sales and rising withdrawals from unit trusts, according to a report in the

UK’s Daily Telegraph.

Just weeks after the second-biggest fund manager in the

UK wrote to investors urging them not to panic about stock market setbacks, it is in talks with staff to shed about 300 of its 2,100 staff in this country. A spokesman for Fidelity International was quoted as saying: "Several hundred people will be made redundant.

"Due to market conditions, we have been reviewing costs across the business. We have seen net redemptions due to loss of confidence in equity markets but they have become less as the year has gone by,” he said.