(Reuters) - Morgan Stanley (MS.N) has shuffled its wealth unit, eliminating a layer of management and promoting two key executives, according to a memo reviewed by Reuters on Friday.
The biggest U.S. brokerage by head count named Vince Lumia, head of private wealth management, its new head of the field. Lumia will report to wealth co-heads Andy Saperstein and Shelley O‘Connor.
Mandell Crawley, the bank’s chief marketing officer, will replace Lumia as head of private wealth management.
The firm eliminated its divisional level with the goal of flattening the organization, naming former divisional heads Bill McMahon and Rick Skae as vice chairmen of wealth management.
A bank spokesman confirmed the contents of the memo.
Morgan Stanley saw its revenue from wealth management rise 11 percent in the first quarter to $4.1 billion. The unit also posted a pretax margin of 24 percent, in line with a target set by Chief Executive James Gorman.
The changes come as the wealth industry prepares to implement the Department of Labor Fiduciary Rule, which sets a standard for brokers who sell retirement products and requires them to put clients’ best interests ahead of their own bottom line. The rule will take effect June 9.
In another major shift for the industry, Morgan Stanley said in May it is pulling back from the expensive recruitment wars for financial advisors, following similar steps taken by peer Bank of America (BAC.N) Merrill Lynch.
Reporting by Olivia Oran in New York; Editing by Phil Berlowitz