Private banking hires to rise in 2006

Scotland may be best known for its fund management industry, but recruiters say there are also job opportunities to be had in the country's wealth management sector.

"Private banking is a growth sector in Scotland," says Richard Fletcher at Edinburgh headhunter Fletcher Jones. "Several institutions are looking at expanding in this area."

Smith & Williamson, the independent financial services group with a private wealth management offering, is among them. Last month it opened an office in Glasgow staffed by a ten-man team led by Stephen Quaile, the former head of rival stockbroker Gerrard's Scottish operation.

According to Quaile, there are plans to hire additional relationship managers with established relationships in the region next year. "There is an opportunity for growth in this area," he says. "The increased wealth from home ownership means there is a growing marketplace for investment management services offered to the man and woman on the street."

Lloyds TSB Scotland is also expanding its private banking operation. This week, it announced the formation of a new private client banking service in Scotland, in which clients will be assigned one of 15 relationship managers based throughout Scotland to deal with their financial affairs. The bank is also setting up a new wealth management centres in Edinburgh, alongside existing centres in Glasgow and Aberdeen.

Lloyds' private client banking service will be open to clients with incomes in excess of 50,000. This is considerably lower than the bar set by private banks such as Coutts & Co. in England, where clients are typically expected to have 200,000 or more in liquid assets before they're invited to join the private banking club.

Recruiters said the discrepancy is reflected in terms of pay for Scotland's private wealth managers. While experienced private bankers working in London can easily earn six figure pay packages, remuneration in Scotland is a lot lower. "Private banking is a very locally focussed industry," says Fletcher: "After seven years working as a private banker in Scotland you can usually expect to earn 50,000, plus a bonus of between 25% and 50%."

Joanna Black, a rival Edinburgh headhunter, says this is too high: "Pay for private bankers in Scotland is more like 50,000, bonus included," she says.