Morgan Stanley’s planned joint venture with Citigroup’s Smith Barney brokerage business has led to the departure of the president and chief operating officer of the former’s global wealth management group, Ellyn McColgan, according to a memo circulated to staff.

The memo, obtained by WealthBriefing, stated that Ms McColgan, who was recruited to the group from Fidelity Investments, was leaving to pursue other opportunities outside the firm.

The departure follows the formation of a brokerage business 51 per cent owned by Morgan Stanley led by Morgan co-president James Gorman and former Smith Barney head Charlie Johnston.

Ms McColgan came to the business initially to replace Mr Gorman in the GWM role when he was named Morgan Stanley’s co-president a year ago.

“Ellyn has provided strong leadership for GWMG during one of the most tumultuous periods our industry has ever seen… Now, with the planning for the new Morgan Stanley Smith Barney joint venture underway, Ellyn has decided to explore other leadership opportunities in the industry, and we respect this decision,” the memo, penned by Morgan Stanley heads John Mack and Mr Gorman, stated.