Peter Hetherington, former chief of online trading platform IG Group, has been named chief executive of the new wealth management business owned by Lloyds Banking Group and Schroders.
The 50-year-old takes over as the Schroders Personal Wealth joint venture finalises its November launch when it will have £13bn of assets under management and 30,000 clients.
He replaces James Rainbow, who returns to Schroders as head of UK distribution and Latin America, after spending close to a year setting up the JV.
Mr Hetherington abruptly left the top job at IG, the FTSE 250 group that is Europe’s largest online trading platform, last year after falling out with then chairman Andy Green, who later stepped down.
Peter Harrison, Schroders’ chief executive, said Mr Hetherington had transformed IG during his 25 years at the company from an old-fashioned paper-based business to a technology-focused platform.
“Peter is high energy and is used to running big, complicated businesses.”
SPW aims to be one of the UK’s top three wealth managers, alongside market leaders including St James’s Place and Quilter.
The industry has been criticised for opaque charging structures that make direct comparisons difficult, while SJP has been in the spotlight over high fees and staff sales incentives such as luxury cruises.
SPW hopes to attract customers with lower charges than its main rivals.
Financial planning and wealth management has become a key part of Lloyds’ efforts to boost profitability, with its retail bank facing a weak economic outlook and increasing competition.
Schroders’s strategy is focused on three areas — asset management; private assets such as private equity; and wealth management, including SPW, and two other financial planning businesses owned by Schroders, Cazenove Capital and Benchmark Capital.
Cazenove targets high net worth individuals while SPW will target the “mass affluent” with more than £100,000 to invest.
“The big opportunity is that there is a shortage of advisers in the UK,” Mr Harrison said. “This is not about dislodging SJP. We see new growth opportunities for Lloyds customers who want help.”
SPW opened this year to a limited number of Lloyds customers but will launch to the public in November.
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