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Rathbones has appointed former banker Jonathan Sorrell as its next chief executive as Paul Stockton prepares to step down from the role after 16 years at the UK wealth manager.

Sorrell, who is currently president of investment firm Capstone Investment Advisors, will join Rathbones as chief executive designate in July, before taking on the role permanently when Stockton retires at the end of September.

Prior to Capstone, which focuses on derivatives, Sorrell was president of FTSE 250 investment firm Man Group, having previously held the role of chief financial officer. Sorrell also worked for more than a decade at Goldman Sachs as a managing director.

He is the son of Sir Martin Sorrell, former chief executive of advertising group WPP.

Clive Bannister, chair of Rathbones, said Sorrell brought a “formidable leadership track record at the most senior level of the broader investment and asset management industry, working across complex global organisations”.

He added that Stockton had “navigated successfully significant geopolitical changes, challenges in the regulatory and market environments and has steered the group into a position of strength, from which it can continue to develop”.

Sorrell’s appointment comes just two years after Rathbones acquired rival Investec Wealth & Investment UK for £839mn, to create one of the UK’s largest wealth managers overseeing more than £100bn of assets.

The UK’s wealth management industry is under pressure to consolidate as it grapples with rising costs and pressure from cheap index-tracking funds.

Other recent mergers in the industry include Royal Bank of Canada’s £1.6bn acquisition of Brewin Dolphin and Raymond James’s takeover of Charles Stanley.

Under Stockton’s tenure, Rathbones’ funds under management grew from £9bn to £109bn. He also oversaw the integration of the business with IW&I following the 2023 merger.

Stockton told the board that he wanted to retire on his 60th birthday, which falls in the second half of the year. He will remain at the company for “handover support” until the end of 2025.

Sorrell said: “Paul has been instrumental in building an incredibly strong platform at Rathbones and I look forward to working closely with him during this transition period to benefit from his knowledge and experience.”