New private bank Scoban has hired Adam & Company associate director Jeremy Vaughan to head a London operation, and is planning to raise a further £30-£40 million, Wealth Manager can reveal.
Scoban chairman Ray Entwistle said plans to launch a wealth management division have been put on hold until the bank is fully operational, which he hopes will be next year.
He told Wealth Manager: ‘Our plan is that over the next 12 months we will look closely at the whole wealth management area and make a decision about how to go forward. We have already done a lot of work and met a number of wealth management organisations, but there are still several different routes we could go down. It could be white-labelling, an acquisition or building our own.’
Vaughan, who previously worked at Hill Samuel as well as Adam & Co, joins as managing director of Scoban’s fledgling London office and will report to group managing director Graeme Hartop, the former Scottish Widows Bank managing director who joined in January. He will also take a seat on the board.
The management team is hoping Scoban will get its banking licence over the next few months and will then set about building and testing the banking platform, with a view to opening in Edinburgh and London early next year.
On the back of these developments, the team is planning to raise a further £30-£40 million to cover its first two years of operation.
This follows the £5 million worth of offers to subscribe for its shares it received in July of last year and the £1.4 million from the group’s initial capital raising.
‘There is a certain amount of excitement in the Scoban camp because March has been a very good month,’ Entwistle added.
The former Adam & Co chair has been planning the launch of Scoban since 2011. The new bank will take a traditional approach to private banking, which Entwistle says will not be product-led.
At the end of last year the bank took up temporary residence at Adam & Co’s former offices at 22 Charlotte Square while its new head office at 9 Charlotte Square, is refurbished.