McColgan, who was recruited from Fidelity Investments a year ago, will be leaving at the end of the month, according to published reports (see “Ex-Fidelity Exec Named To Lead Morgan Stanley Global Wealth Management’ and “McColgan Departs Fidelity After Four Months In New Post’).
Earlier this month, it was announced that Morgan Stanley would combine its brokerage unit with Smith Barney, creating the largest broker/dealer, with 20,000 financial advisers (see “Morgan Stanley Smith Barney is Born’). Morgan Stanley bought Smith Barney from Citigroup for $2.7 billion in exchange for a 51% stake in the joint venture.
“With the planning for the new Morgan Stanley Smith Barney joint venture under way, Ellyn has decided to explore other leadership opportunities in the industry, and we respect this decision,’ Gorman and Chief Executive Officer John Mack wrote in an internal memo, according to Bloomberg.
Investment News said Morgan Stanley Co-President James Gorman and Smith Barney President Charlie Johnston will run the unit.