BoI could offload British financial advisors

BANK of Ireland is reported to have received an offer for its British independent financial advice business Chase de Vere.

The bank has been reviewing the future of its various activities in Britain since new chief executive Brian Goggin took over last summer. According to reports in Britain, Bank of Ireland may sell Chase de Vere as early this week after an approached by German financial services company AWD.

Chase de Vere was bought by the bank some five years ago for €177 million, but has not proved to be a successful acquisition and the sale is not expected to fetch anything near the price BoI paid.

In 2003, BoI cut 350 jobs at the unit and merged with it another of its British businesses, MX Financial Solutions.

Chase de Vere has also come in for criticism from Britain’s Financial Services Authority who slapped the company with a €235,000 fine for distributing misleading promotional information and not telling customers the risks of investments.

AWD is an independent financial services group with 410 branches across Germany, Austria, Switzerland and Britain.

It was also reported yesterday that Bank of Ireland is considering shutting the majority of its remaining Bristol & West branches.

Bristol & West closed 33 branches in 2004, leaving it with 98. But, the Financial Mail on Sunday says most of these are unprofitable and will be shut with the remainder rebranded under the Bank of Ireland name.

The paper said it was not clear what will happen to Bristol & West’s 900,000 customers, though they may be offered Bank of Ireland’s account facilities.

The review of the bank’s operation is part of a cost-reduction drive by Mr Goggin. He is attempting to bring Bank of Ireland’s cost/income ratio below 50% from 54%.