Arbuthnot Latham has appointed Hans-Rudolf Strasser as chief executive of its newly-formed Swiss operation, according to a statement from the company. Mr Strasser joins from AKB Privazbank in Zurich, where he was head of the private bank. He was previously at Credit Suisse and Goldman Sachs. Applications for the Swiss bank will be made to the relevant regulatory bodies shortly and it is anticipated that trading will commence in the second half of 2007. The cost of the Swiss investment in 2007 is expected to be £0.7 million ($1.36 million). Last year Arbuthnot Latham continued its transition into a full service private banking business, growing client numbers by 11 per cent. This involves investment in growing a wealth management business, principally by recruiting more client relationship managers and asset management expertise and has a negative impact on profits, according to a statement from the UK-listed Arbuthnot Group. The company says there is typically a lead-time of 12 to 18 months before client relationship managers make a positive profit contribution and as a result, pre-tax pre-exceptional profits in Arbuthnot Latham were broadly unchanged at £0.3 million after taking account of a net £1.1 million investment in people and infrastructure (2005: £0.4 million). According to the company, performance of the discretionary funds has been encouraging, with average returns of 3.3 per cent above the benchmark, and an average return of 12.7 per cent in 2006. Arbuthnot Securities, the group's investment banking arm of has become the latest member of the Dubai International Financial Exchange. Arbuthnot is only the second specialist UK investment bank to become a DIFX Member.