Merrill Lynch To Open Dublin Office Soon

Lisa Ugur, Tax-news.com, London

19 September 2000

US Financial giant Merrill Lynch, which has its headquarters in New York, has said that it plans to tap into the ever-expanding Irish economy with the opening of a new private client office in Dublin. Merrill currently handles Irish private clients from its London office where the company employs three Irish private bankers. No date has yet been set, but Tim Taylor, the company's head of private banking in the UK and Ireland, has said that the new office will be opened as soon as possible.

When Merrill sets up shop in Dublin, the three London-based private bankers will transfer there, and will be joined by a further seven professionals. Merill manages billions in assets for wealthy individuals around the globe, and the new Dublin outfit is to target those with "serious" money to invest in the stock market. At the top end, the firm hopes to lure investors with $1 million or more of assets to be invested. However, Mr Taylor has stated that Merrill will not turn away those with less to invest and would target more mainstream customers in Ireland within the next two years.

There are an estimated 10,000 millionaires in Ireland and Mr Taylor is well aware of this. He said: 'We believe there's huge potential in Ireland.' In spite of the impending entry of Merrill into the Irish arena, existing private bankers in Dublin do not appear to fear great competition. For one thing, Merrill will be managing investment portfolios containing securities only and will not offer the full range of private banking services, which includes estate planning, tax management and mortgages. Allied Irish Bank and Bank of Ireland offer those services through their private banking divisions. Commenting on Merrill's plans to set up in Dublin, the head of AIB's private banking division John Rockett said: 'There is a market for what Merrill is looking at particularly with the strength of the economy. However, while Merrill may be well known around the globe, it wouldn't be known by the man in the street.'

The Bank of Ireland, too, seems to be at ease with the raging bull's arrival on the brokerage scene. The bank said that whilst Merrill is a very well respected name, the firm will have to contend with long-established relationships created by Irish banks with Irish individuals. Merrill will be charging annual commissions averaging 1 to 2 per cent, depending on the complexity of the portfolio under management. Both Bank of Ireland and AIB levy similarly structured fees, dependent on the assets under management.

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