Two former Merrill Lynch managing directors have set up a new UK-based company seeking to help clients maximise returns on cash.

Paul Richards and Giles Hutson have launched Insignis Asset Management, a Cambridge-based cash management company, to allow high net worth individuals among other clients to deposit cash of at least £100,000 ($141,300), into a hub account, from where it is electronically distributed to bank accounts that give the best returns.

The Insignis Digital Banking Network, aimed at HNWIs, wealth managers, companies, charities and local authorities, will offer access to multiple banking partners. Clients’ deposits will receive FSCS protection for up to £75,000 per person per authorised bank.

Through the digital platform, clients will be free to check balances, make deposits and request withdrawals.

Before retiring from banking after 28 years in 2014, Richards was managing director and co-head of Europe, Middle East and Africa debt capital markets and corporate banking at Bank of America Merrill Lynch. He is the chairman of Insignis.

Hutson is the chief executive of the company and the co-CEO of Markham Private Clients, having previously served as a managing director with Merrill Lynch and, before that, with Morgan Stanley.

“Over 9 million individuals hold between £50,000 and £5 million in liquid assets, and corporate and charity cash deposits are at record levels. However, with low interest rates and the tedious process of moving cash between accounts, increasing their return on those assets has been complex and time consuming...Insignis provides a means for savers and investors to freely deposit and move cash between accounts, taking advantage of the best rates available and dramatically increasing their return,” said Richards.

“With such an extraordinary volume of cash held in inactive and extremely low rate savings and business accounts, now is the time for the industry to start looking at cash as an actively managed asset class. With Insignis, each client experiences an efficient and transparent process and achieves the right balance of security, liquidity and return,” Hutson added.