(Bloomberg) -- IGM Financial Inc. said Chief Executive Officer Jeff Carney stepped down after being diagnosed with Alzheimer’s disease and named former Bank of Nova Scotia executive James O’Sullivan as his replacement.

O’Sullivan “is a well-respected industry veteran with a strong background in every aspect of the financial services sector,” IGM Financial Chairman Jeffrey Orr said in a statement Monday. “He has the depth of knowledge and experience to successfully lead IGM forward as it continues to pursue its value-creation strategy.”

Carney will continue to serve in an advisory capacity to IGM Financial’s companies, according to the statement. Carney had pursued a client-focused strategy for IG Wealth Management that has improved the company’s competitive position and re-established the position of its mutual-fund arm Mackenzie Investments as an industry leader, the firm said.

“I have been diagnosed with the early stages of Alzheimer’s disease and while this is a tough decision to make, stepping aside at this time is the right move for both my family and the company,” Carney said in the statement.

O’Sullivan spent 30 years at Scotiabank, where his last executive role was as group head of Canadian banking before leaving last year. IGM Financial also said it appointed Damon Murchison, executive vice president and head of retail at Mackenzie, as president and CEO of IG Wealth Management, with the changes effective immediately.

Shares of IGM rose 0.8% to C$32.06 at 10:37 a.m. in Toronto.

(Updates with Carney comment in fourth paragraph, shares in last. An earlier version of this story corrected reference to company disclosure on health reason.)

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