Recently-retired chairman of Edinburgh private bank Adam & Co Ray Entwistle is leading a start-up in competition with his RBS-owned former firm, according to media reports. The new venture, working title Scoban, will be based in Edinburgh and London.
Entwistle, with Simon Miller, another former Adam & Co director, plus non-executive directors David Nabarro and Alex Hammond-Chambers, aim to raise up to £100 million (about $160 million).
Entwistle is quoted as saying said the new bank could be up and running by July 2012. The plan is to start with £500,000 to fund the development plan to be submitted to the FSA, followed by £3 million to hire senior management and staff. A third funding round, seeking between £50 million and £100 million, would "provide appropriate working capital and support offices in London and Edinburgh".
The board of Scoban said in a statement it was "confident in the outcome as the FSA, the British Banking Association and the government are all keen to see the formation of new banks".
"My London and Edinburgh-based colleagues share my view that it's high time for the creation of a new private bank," Entwistle said.
"We want to develop a very close relationship with our clients and their families so that they feel that the bank belongs to them. We want, genuinely, to know our clients and provide them with a decision-making process which facilitates a speedy and efficient response to their needs.
"The interest we have received from potential investors has been overwhelming and I feel that our timing is right in terms of the interest rate cycle."
Adam & Co has seen a number of appointments and departures in recent months. Last December, it appointed Graham Storrie as its new managing director, who comes from the firm’s parent bank, Royal Bank of Scotland.