Morgan reassures clients as heads roll

Deutsche Morgan Grenfell yesterday launched a telephone onslaught on its key clients to reassure them about its fund management subsidiary's prospects, as it confirmed that four top directors and a compliance officer had been fired.

The most senior departure was Keith Percy, chief executive of Morgan Grenfell Asset Management, who has been replaced by Robert Smith, who headed Morgan Grenfell's investigation into the pounds 180m fund management scandal.

However, Morgan's attempt to reassure its clients was met with reservations by the Merchant Navy Officers' Pension Fund, which is to review its contract with the company. Geoff Henry, chief executive of thefund, which has over pounds 200m at Morgan, said: "This is something for the trustees to consider. Keith has built up a strong team."

He said: " It's obviously a concern that the person who was the architect of Morgan Grenfell's revival has left." His investment committee meets in December and will not discuss Morgan Grenfell before then.

Mr Smith, a 52-year-old Glaswegian, said: "Obviously with changes like this some people may reconsider. We've spoken to big institutional funds and we seem to be getting supportive comments back."

Graham Kane, managing director of Morgan Grenfell Unit Trust Managers, Michael Wheatley, compliance director at Morgan Grenfell Asset Management and Glyn Owen, chief investment officer for the international division of Morgan Grenfell Asset Management, were also shown the door yesterday.

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