Morgan Stanley has named James Gorman president and chief operating officer of its Individual Investor Group, the firm’s global retail sales force.

Gorman, 47, who joins Morgan Stanley from Merrill Lynch, will be a member of the firm’s management committee and report to acting president Zoe Cruz. He will assume his new role effective February 2006; until that time, Ray Harris will continue to serve as acting president and COO.

Most recently, Gorman served as executive vice president and head of corporate acquisitions, strategy and research. Until June, he was president of Merrill Lynch’s Global Private Client Group, managing that firm’s 14,000 financial advisors.

John Mack, Morgan Stanley’s chairman and chief executive officer, said, “James Gorman’s depth of experience and expertise are unmatched in the industry, making him uniquely qualified to lead the transformation of Morgan Stanley’s retail brokerage business. We are excited about the great potential of Morgan Stanley’s retail business and believe that James is the right leader at the right time to help us realize that potential.”

“The senior management of Morgan Stanley is strongly committed to our retail business and greatly values our high-quality financial advisors,” added Cruz. “We look forward to working with James to grow the business, enhance its profitability and ensure a culture of excellence across the organization.”

Gorman joined Merrill Lynch in 1999 as chief marketing officer. In 2000, he was named head of the firm’s brokerage business. In 2001, he became president of the U.S. private client business and in 2002 was named president of the private client business worldwide.

Before joining Merrill, Gorman served as a senior partner of McKinsey & Company, where he was a member of the financial services practice. And, prior to that, he was an attorney in Melbourne, Australia. He is a member of the board of directors of the Securities Industry Association and is that organization’s chairman-elect for 2005. He also serves as a Trustee of Columbia Business School.