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View the article online at http://citywire.co.uk/wealth-manager/article/a672457

Scoban aims to raise £40m & hires Adam & Co man for London push

by Danielle Levy on Apr 16, 2013 at 10:50

Scoban aims to raise £40m & hires Adam & Co man for London push

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. 

5 comments so far. Why not have your say?

Martin Ashworth

Apr 16, 2013 at 11:21

Oh Great - another Wealth Management Company - no doubt with ambitions to "push out the brand regionally" - just what this country needs right now !

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PCIAM

Apr 16, 2013 at 11:52

Actually, Martin, Adam were half-way sensible and had a very good offering from banking through investment management to a turnkey settlements package. It is alleged that RBS/Natwest/Coutts did for a very good business in very short order, which is why Entwistle and some of his old banking colleagues are at Scoban and why a fair few of the investment managers are in the Edinburgh office of Brooks Macdonald.

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Teddy

Apr 16, 2013 at 23:26

It's a brave move but hoping to get a banking licence is no substitute for actually getting one and in the current climate this is not only fraught but expensive. I cannot foresee a position where £5M will be sufficient for the FSA (FCA) and it looks like overseas investors will need to step in from either Switzerland, Israel, Russia or the like.

Good luck anyway - you will need it!!.

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Guy Usabreak

Apr 18, 2013 at 12:00

Agree Teddy. At least a couple of credible Bankers now being put in place..back office staff are a cost but who will do earning and how must be of interest to any investor. Banking is a very competitive market and Adam, Coutts and many others are there with banking and full wealth management offerings, credible staff and systems already. Good luck will be needed a. to get the investment b.to get a licence c. to get sufficient wealth management business to sustain the new bank.

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Guy Usabreak

May 26, 2013 at 10:15

Has anything progressed since the ' excitement' in March?

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