Morgan Grenfell Asset Management (MGAM), the scandal-ridden fund manager owned by Deutsche Bank, is to announce this week the start of its biggest shake-up since sacking star fund manager Peter Young last month.
Robert Smith, currently chief executive of Morgan Grenfell Development Capital, is to become head of Morgan Grenfell Asset Management, in the first step towards a staff purge of all senior executives found to bear some blame for the irregular dealings by Mr Young.
The bank's long-awaited preliminary findings into the case is almost complete, and the bank is eager to start showing clients that it is willing to take the necessary action against any breaches of compliance or legal rules.
Following the appointment of Mr Smith, it is likely that MGAM's current chief executive, Keith Percy, will be either demoted or even could be asked to leave.
While there is no suggestion that Mr Percy was aware of Mr Young's dealings, or that Mr Young held the more than permissible level of unquoted securities in his equity portfolios, it is thought Mr Percy should have monitored Mr Young's actions more closely.
Mr Young is under criminal investigation after Britain's Serious Fraud Office (SFO) launched a surprise raid on his home two weeks ago.