Ex-Adam & Co chair Entwistle: why UK needs a new bank

While Entwistle is still considering building an investment division by acquiring a number of asset management businesses, for which he has previously estimated a £25 million war chest would be needed, he has stressed that the RDR-compliance of potential targets represents a key concern.

‘In our mind, one of the worries for us is RDR-compliance. We are slightly nervous because of the reports that a number of investment houses won’t be RDR-compliant – it is a bit of a worry,’ he said.

‘We have seen one or two businesses for sale – without the for sale sign on the window – and one questions why these businesses are for sale. One has to reflect on what is going on in the marketplace, particularly on the regulatory side.’

While Entwistle is keen to have an investment management division, he said that setting up a private bank that is not product-led was the priority. ‘The fact is that everyone who has given us money has said they believe in the concept of the private bank,’ he said.

‘What we are saying is this is more about banking than investment management. With the funds that we have at the moment, we need to realise what is our priority. Investment management can be handled in many ways, whereas private banking as a process is slightly purer.’

Entwistle is planning to initially launch branches in London and Edinburgh.