Handelsbanken, the Swedish bank which acquired Heartwood in May 2013, is creating a UK subsidiary due to the uncertainty surrounding Brexit and how it might impact passporting rules.
While this will not change anything for customers, the creation of a subsidiary is expected to ‘strengthen [the business’s] foundations for future UK growth’.
It will be owned by its parent Handelsbanken Group and will be regulated by the Prudential Regulation Authority.
A spokesperson added: ‘Handelsbanken is fully committed to the UK for the long term and we see the creation of a subsidiary as a natural next step in our UK development.
‘We will base further expertise and resources here in the UK, closer to our branches and the customers they serve. We will remain an integral part of one of the world’s strongest banks and most successful business models.’
The wealth management arm of the business has seen a 19% rise in assets under management and advice to £3.4 billion, according to its results for the year to 31 December 2017. The business ended 2017 with a pre-tax profit of £1.3 million, compared to a £600,000 loss the previous year.
Revenue was up 14% to £25.8 million, while costs also grew by 6% to £24.6 million.
Elsewhere, Handelsbanken Wealth Management has hired Kersi Deboo as a client director. He joins from Cambridge law firm Tees, where he was a director and chartered financial planner.