UK Markets close in 7 hrs 55 mins

JP Morgan Boosts Branch Targeting Super-Rich

(c) Sky News 2013
 

Investment bank JP Morgan has bolstered its private wealth arm in Britain because of the increasing number of multi-millionaires in the region.

The bank has appointed seven top bankers to its British division, poaching five from rivals, amid expansion plans to target the ultra-rich, known as high net worth (HNW) clients.

"The hires within our Private Wealth Management business in the United Kingdom highlight our commitment to the increasing number of high net worth clients in the region," division head Tracey Reddings said.

Ms Reddings, who joined last year from Societe Generale (Paris: FR0000130809 - news) , is attempting to lure more of the so-called core millionaires to JP Morgan.

These are HNW clients with assets of between £2m and £16m.

Last year the Sunday Times Rich List revealed that the richest continued to amass wealth.

In recent years Britain has become a haven for wealthy foreigners to invest their money. A number of those at the top of the Rich List were foreign- born.

The issue of foreign wealth investment in London property has become a political issue for Chancellor George Osborne.

A so-called mansion tax was ruled out last year against Liberal Democrat wishes but the Finance Bill was drafted to help target super-rich foreign property buyers using partnerships or companies as purchase vehicles.

The Finance Bill confirmed a continuation of hitting the rich with a 15% stamp duty land tax for homes worth more than £2m from "non-natural persons".

Additionally, the rich were targeted with a new annual levy to be paid by corporate vehicles, capital gains tax for purchases through companies and a hike in stamp duty to 7% for "ordinary" purchases of homes over £2m.

The stamp duty loophole has allowed an estimated £1bn in tax to be avoided annually by rich foreigners.

Although HNW clients can return greater margins for banks, further expansion of tax vehicles for the super-rich are set to spark fury from both the public and politicians.

US multinationals have recently felt the wrath of MPs after they were grilled about corporate tax structures that potentially denied the Exchequer of funds.

Planned expansion of the UK HNW business by JP Morgan follows a similar push in Asia led by the former head of Standard Chartered (Other OTC: SCBFF - news) , Peter Flavel.

More From Sky News

  • Virgin Money agrees £1.7bn takeover by CYBG
    News
    Sky News

    Virgin Money agrees £1.7bn takeover by CYBG

    Virgin Money has agreed to be taken over by Clydesdale and Yorkshire Banking Group (CYBG (Frankfurt: 42YA.F - news) ) in a deal worth £1.7bn that could result in 1,500 job losses. The banks, which had until 5pm on Monday to strike an agreement, said the combined group would "create the UK'

  • Behind flashy IPO of Japan's Mercari lies a thriving thrift economy
    Finance
    Reuters

    Behind flashy IPO of Japan's Mercari lies a thriving thrift economy

    When flea market app Mercari makes its market debut on Tuesday, it will mark the appearance of one of Japan's rarest beasts: a tech unicorn. Mercari's app allows users to buy and sell from each other, swiping and tapping their way through items as diverse as designer clothes and toilet paper

  • Lufthansa says in contact with Norwegian Air - CEO in paper
    Finance
    Reuters

    Lufthansa says in contact with Norwegian Air - CEO in paper

    BERLIN (Reuters) - Lufthansa is in contact with Norwegian Air Shuttle , also the subject of bid interest from British Airways owner IAG , the German group's chief executive told a German daily, sending Norwegian's shares higher.

  • Finance
    Reuters - UK Focus

    Meghan's father sorry to have missed wedding to Britain's Prince Harry

    Thomas Markle, the father of Britain's newest royal Meghan, has spoken of his regret that he wasn't well enough to walk his daughter down the aisle as she married Prince Harry, but said he was pleased that Harry's father Charles was able to step in. Drama over whether Thomas Markle would

  • Finance
    Reuters - UK Focus

    Lufthansa says in contact with Norwegian Air - CEO in paper

    Lufthansa is in contact with Norwegian Air Shuttle, also the subject of bid interest from British Airways owner IAG, the German group's chief executive told a German daily, sending Norwegian's shares higher. ...

  • Equinor hands $3.7 billion service deals to Schlumberger, Halliburton, Baker Hughes
    Finance
    Reuters

    Equinor hands $3.7 billion service deals to Schlumberger, Halliburton, Baker Hughes

    OSLO (Reuters) - Norwegian oil and gas firm Equinor has awarded drilling and well service contracts worth 30 billion Norwegian crowns (2.77 billion pounds) to Schlumberger , Halliburton and Baker Hughes , it said on Monday.

  • CYBG and Virgin Money agree £1.7 billion deal to create Britain's sixth biggest bank
    News
    Reuters

    CYBG and Virgin Money agree £1.7 billion deal to create Britain's sixth biggest bank

    Mid-sized bank CYBG has agreed a 1.7 billion pound all-share deal to acquire Virgin Money, which it said will create Britain's sixth-largest bank and a new challenger to the country's top four lenders. The deal, on the same terms as CYBG's sweetened bid in June, will see Virgin Money shareholders

  • 10 things in tech you need to know today
    News
    Business Insider UK

    10 things in tech you need to know today

    Good morning! This is the tech news you need to know this Monday. The two firms will work together to create retail infrastructure in Southeast Asia. 2. Apple signed a multi-year deal with Oprah Winfrey to develop original programming.

  • Finance
    Reuters - UK Focus

    CYBG and Virgin Money agree $2.26 bln deal to create Britain's sixth biggest bank

    Mid-sized bank CYBG (Frankfurt: 30712270.F - news) has agreed a 1.7 billion pound ($2.26 billion) all-share deal to acquire Virgin Money, which it said will create Britain's sixth-largest bank and a new challenger to the country's top four lenders. The deal, on the same terms as CYBG (Frankfurt

  • News
    Business Insider UK

    First lady Melania Trump "hates" to see families separated

    First lady Melania Trump "hates" to see families separated at the border and hopes "both sides of the aisle" can reform the nation's immigration laws, according to a statement from her office. While the statement suggested the matter was an issue for Congress, Democratic lawmakers

  • Finance
    Reuters - UK Focus

    Lufthansa says in contact with Norwegian Air - CEO in paper

    Lufthansa is in contact with Norwegian Air Shuttle, also the subject of bid interest from British Airways owner IAG, the German group's chief executive told a German daily. "In Europe, everyone is ...

  • Oil falls on threat of China crude tariffs, expected OPEC supply rise
    Finance
    Reuters

    Oil falls on threat of China crude tariffs, expected OPEC supply rise

    Oil prices on Monday extended falls from late last week after China threatened duties on American crude imports in an escalating trade dispute with Washington, while supply from OPEC and Russia is also expected to rise. U.S. West Texas Intermediate (WTI) crude futures touched their lowest level since

  • Goldman sees slightly easier China monetary policy amid trade tiff with U.S
    Finance
    Reuters

    Goldman sees slightly easier China monetary policy amid trade tiff with U.S

    Goldman Sachs said it expected China to adopt a slightly easier monetary stance in the face of tit-for-tat tariffs between Beijing and Washington that, while likely to have limited immediate impact on the economy, were at risk of escalating. On Friday, the Trump administration imposed tariffs on $50

  • Virgin Money takeover by CBYG to result in 1,500 job losses
    Finance
    The Guardian

    Virgin Money takeover by CBYG to result in 1,500 job losses

    Virgin Money bought Northern Rock’s assets for £747m in 2011. More than 1,500 jobs, mainly senior management posts, are to be axed in the £1.7bn takeover of Virgin Money by the owner of Clydesdale and Yorkshire banks. Clydesdale and Yorkshire Bank Group (CYBG) and Virgin Money have agreed to create

  • News
    Business Insider UK

    1 dead, 3 injured in van crash at end of Dutch pop festival

    AMSTERDAM (AP) — A van has run into a small group of pop fans at a festival in the Netherlands, killing one and injuring three, before fleeing the scene.

  • The bigger Cryptocurrencies get, the worse they perform - BIS
    Finance
    Reuters

    The bigger Cryptocurrencies get, the worse they perform - BIS

    Cryptocurrencies are not scalable and are more likely to suffer a breakdown in trust and efficiency the greater the number of people using them, the Bank of International Settlements (BIS)said on Sunday in its latest warning about the rise of virtual currencies. For any form of money to work across

  • Unilever says it won’t work with social media stars who buy followers
    Finance
    CNBC

    Unilever says it won’t work with social media stars who buy followers

    Consumer-goods company Unilever will not work with social media stars, or "influencers," who buy followers on platforms such as Twitter and Facebook, it announced Monday.

  • CYBG to acquire Virgin Money for £1.7bn in shares
    Finance
    The Telegraph

    CYBG to acquire Virgin Money for £1.7bn in shares

    CYBG to acquire Virgin Money for £1.7bn in shares

  • Finance
    Reuters

    Packaging firm DS Smith's full-year adjusted profit rises 21 percent

    (Reuters) - Packaging group DS Smith Plc posted a 21 percent rise in full-year adjusted pretax profit on Monday, driven by acquisitions and strong demand from its European and e-commerce customers.

  • UK economy to grow at slowest pace since 2009 - BCC
    News
    Reuters

    UK economy to grow at slowest pace since 2009 - BCC

    Britain's economy looks on track to grow at its weakest rate since 2009 this year due to Brexit uncertainties, higher oil prices and fears of a trade war, the British Chambers of Commerce said on Monday. "The economy is in a torpor, with uncertainties around Brexit, interest rate rises, and

  • Graphic - China's tariffs on U.S. oil would disrupt $1 billion monthly business
    Finance
    Reuters

    Graphic - China's tariffs on U.S. oil would disrupt $1 billion monthly business

    China's threat to impose duties on U.S. oil imports will hit a business that has soared in the last two years, and which is now worth almost $1 billion (753.52 million pounds) per month. In an escalating spat over the United States' trade deficit with most of its major trading partners, including

  • News
    Business Insider UK

    Koepka's golf legacy secured after 2nd straight Open win

    For a guy who has won all of three PGA Tour events, Brooks Koepka has a golf legacy that already is secure. Koepka became the first man to turn that impressive trick in nearly three decades by handling a Shinnecock Hills course that varied from beastly to benign. "I don't want to say I didn

  • News
    Business Insider UK

    Syria says US-led strike hits troops in east, US denies

    BEIRUT (AP) — Syrian state TV is reporting that the U.S.-led coalition has struck a military position in the country's east, leaving several troops dead and wounded, allegations denied by a U.S. official.

  • UK pension funds get green light to dump fossil fuel investments
    Finance
    The Guardian

    UK pension funds get green light to dump fossil fuel investments

    Young people are increasingly questioning where their money is being invested, says secretary of state for work and pensions Esther McVey. Managers of the £1.5tn invested in Britain’sworkplace pension schemes are to be given new powers to dump shares in oil, gas and coal companies in favour of long-term

  • Eurozone braces for row with Greece over bailout exit terms
    Finance
    The Guardian

    Eurozone braces for row with Greece over bailout exit terms

    Eurozone finance ministers are braced for a row this week with the Greek government over the terms of a “golden goodbye” as the country prepares to exit its third bailout programme. Concerns that Greece will suffer a fourth financial collapse unless an agreement is signed with the EU to write off some