Entwistle aims to raise £75m for new bank

THE former chairman of Adam & Co hopes to raise £75m to set up his new private bank.

Ray Entwistle said he plans to issue a prospectus for Scoban this week in an attempt to win more funds from potential investors.

“We need £50m for the core bank and £25m to buy asset managers,” Entwistle said. He is also considering raising funds through a listing on Aim.

Scoban is one of a clutch of new banks ­– also including high street bank Metro, business bank Shawbrook and private equity-backed Aldermore – to have emerged since the financial crisis.

Entwistle said, however, it was taking longer than planned to set up Scoban, with many institutional investors still wary of putting money into new projects.

“When I first approached the Financial Services Authority watchdog, they said it would take longer than you think and it will cost you more than you think.

“A lot of institutions are still suffering from 2008. There’s a very cautious attitude towards investing in something new.”

Scoban could benefit from dissatisfaction with the industry, which has faced public anger over the mis-selling of payment protection insurance (PPI), Entwistle believes. Last week the FSA fined Coutts £8.75m for failings in its anti-money laundering controls systems.

“The main reason people are saying ‘yes’ to a new private bank for service is that most of the private banks are owned by a big player, and the big players are seen to be more interested in selling products than providing service,” Entwistle said.