HARRY Morgan has quit as head of investment management at Adam & Company, the private bank which restructured last year after losing much of its former autonomy within Royal Bank of Scotland.

Mr Morgan is leaving to set up a new onshore private investment arm for Thomas Miller Investment, where he will be reunited with ex-Edinburgh Fund Managers colleague Mike Balfour who heads the operation. Andrew Herberts, an investment director at Adam, will join as his deputy.

After news of the departures broke yesterday, Adam & Co announced that Graham Storrie, the internal appointment to the chief executive role at Adam 14 months ago, would now also become chief executive of the investment business, while Dickson Anderson, a former managing director Europe at Franklin Templeton, would take over the day-to-day running of discretionary portfolio management.

Adam said Ian Ewart, head of products, services and marketing for RBS's wealth division, had been appointed to the Adam & Co board. Mr Ewart joined RBS from Bank of America Merrill Lynch last year.

Mr Storrie said the business had "performed extremely well over the last three years".

The bank shed 130 jobs, or 40% of headcount, last year as RBS slimmed down its wealth division. A raft of senior fund managers exited the investment business in 2009 to set up a Scottish operation for Brooks Macdonald.

Mr Morgan worked for Adam & Co in its early years before spending four years as head of private clients at EFM and five in the same role at Newton, rejoining Adam in 2007.

He will oversee the creation of an onshore arm to complement Thomas Miller Investment's existing private client operation in the Isle of Man. He will take up his new role in May.

Part of a 127-year-old insurance group, Thomas Miller Investment has £2.7bn under management and set up an Edinburgh office in 2006 under Christopher Smith, formerly of Noble Grossart.

Mr Balfour said: "Harry's appointment is testament to the appeal of Thomas Miller Group's heritage and our serious intent to develop a UK private client business which builds on our existing experience and expertise."

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