A BILLIONAIRE businessman, aristocrats and city slickers have poured £40million into Hampden & Co — the first new bank in Scotland in 30 years.
Its Edinburgh HQ is yards from Nicola Sturgeon’s Bute House residence.
But there are fears a rampant SNP and talk of another indy poll could force its unionist shareholders to demand a move south.
Here RUSSELL FINDLAY finds out what the Hampden Roar is with the capital’s new finance house.
SCOTLAND’S new elite bank is set to open its doors to some of the UK’s wealthiest people.
But already there are fears that prestigious Hampden & Co may be forced by shareholders to move its business south — over fears of SNP tax rises.
The private bank’s headquarters in Charlotte Square, Edinburgh, are just a few doors away from Nats First Minister Nicola Sturgeon’s Bute House residence.
However, many of Hampden’s super-rich backers are staunch unionists who fear their savings may be hit by a rampant SNP push for full fiscal autonomy and another independence referendum.
Founder and chairman Ray Entwistle, 70, is known to be apprehensive about the tax policies the Nats may introduce.
While biggest investor Tim Oliver, 71, admits he’d prefer to register the bank at his own company’s offices in England.
Other shareholders include shipping tycoon Alastair Salvesen, 73 — who backed the No campaign in last year’s indy poll — and London art dealer Ivor Braka, 60, a pal of Prime Minister David Cameron.
Mr Entwistle insisted “we have absolutely no intention of racing into any kind of decision”.
But referring to the SNP’s election success — which saw them win 56 of Scotland’s 59 seats — he warned: “I suspect a host of businesses that were anxious over the referendum last year remain partially anxious about what happened last month.
“This bank is registered in Scotland, the head office is in Edinburgh and we have a large number of friends we want to do business both in Scotland and in London.
“We are going to wait and see what happens over the next few months.
“And I suspect that a lot of other businesses are waiting to see what transpires politically.”
The bank chief added: “Obviously people will be concerned about the way things will operate in the future in Scotland depending on the degree of devolution that emerges. We are not politically motivated in any way.
“But we will consider very carefully the interests of our shareholders and our clients as things unfold in the UK over the next few years.”
Asked if the location of the bank’s headquarters is dependent on politics, Mr Entwistle said: “I really can’t say that.
“This is a time when we’re celebrating opening a new bank after nearly five years of planning.
“We don’t want to dwell on the political future.”
Despite its name sounding as Scottish as whisky and kilts, the new bank has nothing to do with the home of the Tartan Army.
The business was initially called Scoban but took its new title after Mr Oliver threw the weight of his insurance firm, The Hampden Group, behind it.
The company is based at Hampden House, above right, the tycoon’s stately home in Buckinghamshire. And it is also next to the Prime Minister’s country retreat, Chequers.
Mr Oliver makes no secret of his wish to transfer the bank’s brass plate from Edinburgh to his home — which was once lived in by English Civil War hero John Hampden, who died in 1643.
He said: “I would like the registered office to be here, just because it’s a source of pride that this is John Hampden’s house rather than anything else.
“I’m not saying anyone’s agreeing with me on that. But the trouble is we don’t want to be dodging back and forth across borders because we are worried someone might do something silly.
“I’m hoping the SNP will be responsible. I don’t think there’s any particular reason why they should misbehave.”
Hampden & Co has cherry-picked nearly 300 moneybags clients to kick off its operations this summer.
Many of its shareholders represent a who’s-who of high society — with lots of them strongly opposed to Scottish independence.
They include self-storage tycoon Alister Jack and Greenock-born financier Malcolm Offord, who both donated cash to the Scottish Tories, plus Edinburgh-based philanthropist Sir Gerald Elliot who gave £10,000 to the Better Together campaign.
Barry Sealey, 79, the former Christian Salvesen managing director and business angel, is also against a split.
The bank’s list of aristocratic customers includes the Queen’s cousin David Bowes-Lyons and the Earl of Rosebery’s daughter Lady Caroline Primrose.
Other investors are former Dobbie’s garden centre chief James Barnes, Edinburgh art dealer Alexander Meddowesand Stirling-based construction tycoons Duncan Fletcher and Duncan Ogilvie, both worth over £50million.
Mr Entwistle was previously in charge of the RBS-owned private bank Adam & Co. He has already committed half a decade to Hampden and aims to have 6,000 clients in five years.
The bank was due to open last year but that was put back to March. Bosses are hopeful of being ready for business this month.
They blame regulatory problems — and deny the delays were caused by the Nats’ popularity. Mr Entwistle said: “We don’t have final approval yet.
“But we are expecting to be able to do business very soon now. We want to deal with nice people who understand that, in banking, they want a high-quality service.
“We have a substantial number of shareholders and clients already and we want to concentrate on looking after them before we run the risk of maybe being swamped with new business.”
Deputy First Minister John Swinney said: “We have a world-leading financial services sector and a talented workforce, making Scotland a great place for new businesses to locate.
“The Scottish Government has been clear about its approach to taxation. This will be based on ability to pay, certainty, convenience and efficiency of collection.”
THE MONEY MEN
Ray Entwistle
SPENT most of his career with RBS-owned private client bank Adam & Co before deciding to launch his own version in Charlotte Square, Edinburgh.
Alastair Salvesen
THE billionaire landowner and entrepreneur whose great-grandad founded the Christian Salvesen shipping empire is reputedly Scotland’s third-richest man.
Tim Oliver
A SHOOTING enthusiast whose £2billion insurance group HQ is Hampden House stately home in Bu- ckinghamshire, near the PM’s Chequers retreat.
Ivor Braka
A MILLIONAIRE art dealer in Chelsea, West London, and upmarket pub owner whose pals including David and Sam Cameron and designer Stella McCartney.
SHARE OWNERS A SECRET
INVESTORS in Hampden & Co can keep their identities secret by owning shares through firms based in offshore tax havens.
Euripides Investments Ltd, the new bank’s second largest shareholder, is based in kersey - meaning its ownership is secret.
The owners are also likely to pay less tax on profits than individual UK shareholders.
Another major shareholder is Guernsey-based Kusapi Ltd.
John Christensen, executive director of the Tax Justice Network, said: “There’s no way of knowing who sits behind these offshore companies.”
But Ray Entwistle said: “We’re confident there are no issues regarding any of our shareholders.”
CHINESE BACKERS RIDDLE
BOSSES at the bank are refusing to reveal the identity of a major Chinese investor.
Cai Dang Fang is listed in Companies House records as Hampden's fourthlargest shareholder. But it's not known whether that is a person or a company and chiefs won't say if they are based in the UK or overseas.
There is also no record of a Cai Dang Fang online or in the global media.
Smaller mystery backers include Nora N Dungo and Osgoodby Ssas.
Ray Entwistle said: "All I can say is that our shareholders have been carefully vetted and are perfectly legal within their rights to be shareholders in this bank.
First published in the Scottish Sun on June 14, 2015:
https://www.thesun.co.uk/archives/news/183903/new-bank-on-the-block/
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