Morgan Stanley brings in a new private-client chief

FWR Staff

18 December 2007

Former Fidelity exec McColgan to replace Gorman in Global Wealth Management. Morgan Stanley plans to put former Fidelity executive Ellyn McColgan in charge of its Global Wealth Management Group at the start of the second quarter of 2008. She'll replace James Gorman, who was made co-president of Morgan Stanley a few weeks ago.

Reporting to Gorman, McColgan will be responsible for the firm's private-client business in the areas of brokerage and investment-advisory services, financial and wealth planning, credit and lending, banking and cash management, annuities and insurance and retirement and trust.

First choice

"I have known Ellyn for many years, having first met her when we served together on the board of the Securities Industry and Financial Markets Association," says Gorman. "She is one of the most talented executives in the wealth management industry and brings great insight, expertise and a fresh perspective to our business."

Morgan Stanley says that McClogan was Gorman's first choice to succeed him as head of the firm's wealth-management division when he was promoted last month.

McColgan joined Fidelity in 1990 and became head of its brokerage businesses in 2002. She left the Boston-based mutual-fund company about fours months ago -- which was about seven months after she's been made Fidelity's head of distribution and operations. Some thought her a likely successor to Fidelity's chairman and CEO Edward Johnson, whose family owns a large part of the closely held company. Johnson's daughter Abigail Johnson is a senior executive at Fidelity.

Morgan Stanley's chairman and CEO John Mack says that McColgan has shown what she can do as head Fidelity Brokerage Company, of one of the biggest wealth-management businesses in the U.S. "Ellyn has a proven ability to grow revenues and profits, deliver a superior operating platform to Financial Advisors and create a client experience that is second-to-none," he adds. "Her leadership will enable us to build on the momentum we have achieved over the past two years in this important business for Morgan Stanley."

The "momentum" Mack mentions has to do with Morgan Stanley's moves since Gorman arrived from Merrill Lynch in February 2006 to pink-slip underachieving reps, improve technology and move the whole business up market. In the third quarter of 2007, Morgan Stanley Global Wealth Management Group's annualized sales came in at $817,000 per advisor, up from $502,000 per advisor in 2005.

New York-based Morgan Stanley has more than 8,300 brokers around 600 offices worldwide. -FWR

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