Merrill Lynch Open For Business With Ireland's High Net Worth Individuals

Amanda Banks, Tax-news.com, London

05 March 2001

Private banking competition is hotting up in Ireland, with Merrill Lynch opening a new office in Dublin last week in an attempt to win the private banking custom of the increasing number of Irish millionaires. Rumours abound that other big US investment institutions, such as Goldman Sachs and Morgan Stanley, may follow suit.

Merrill Lynch has stated that it wants to meet the 'wealth management needs' of those with a minimum of US$1m in liquid assets. John Maitland, managing director of Merrill Lynch's private clients group in the UK and Ireland, said: 'We would accept smaller amounts to open an account but only in exceptional cases. We're really interested in high net worth (HNW) individuals who have $1 million to $10 million, and ultra high net worth individuals who have $10 million plus to invest.'

Mr Maitland said Ireland's economic boom had created a plethora of wealthy customers who needed the services of an investment bank like Merrill Lynch. He told the Sunday Business Post: 'We believe there are quite a few ultra high net worth individuals (persons worth over $10 million) in Ireland. An economic downturn would undoubtedly have an effect, but we think the wealth created in the last five to ten years in Ireland presents us with a huge opportunity. Private banking is a long-term business by nature and we are a long-term player. Clients actually need more added-value services and advice in a downturn than they do in a good market. Adding value is picking good stocks in bad markets and trying to prevent erosion of our clients' wealth.'

He continued: 'We are not concentrating on offering domestic equities or domestic funds - we want to complement, not replicate, what existing brokerages are doing in Ireland. The main difference is the range of products we have. We can offer a truly global equity service. Clients can trade (buy or sell) shares in any of the major markets around the world ...to manage a $1 million equity portfolio we would charge about 1.5 to 2 per cent - but it all depends on the size of the client's account.'

Offshore funds will also be on offer in locations such as the Channel Islands and Luxembourg. Merrill will provide lending services to 'complement' the bank's investment services. 'However,' said Mr Maitland, 'if we have a client who has $50 million with us and wants to buy a house in France, we can arrange a loan.'

So, for most of us, we won't be taking our custom to Merrill Lynch with our post office savings book just yet, but who wants a house in France anyway?!

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