Gilliat halts new business, transfers SP book to Mariana

Arbuthnot Latham & Co and Mariana Capital Markets LLP have today entered into a strategic co-operation agreement in relation to the structured products business of Gilliat Financial Solutions (GFS), a subsidiary of Arbuthnot Latham.

The co-operation arrangement entered into by Arbuthnot Latham and Mariana Capital follows the decision of senior GFS executives Steven Graham, Andrew Savill and Zane Tibble to join Mariana Capital, which they will now do with immediate effect.

James Fleming, chief executive of Arbuthnot Latham & Co, said that although GFS is now profitable this is the right time to enter into the co-operation arrangement with Mariana Capital and for Arbuthnot Latham to focus on its core private banking business which continues to grow strongly.

"This transaction also assures the clients and investors in products issued by GFS of continuity of service," he said.

Under the arrangement agreed with Mariana Capital, GFS will cease to provide new structured products with immediate effect, and all GFS structured products that are currently in the market but have not yet closed will be supported by GFS and Mariana Capital.

In addition, GFS will continue to act as plan manager for the historical book of existing GFS products until maturity between 2014 and 2021; and all existing GFS products will continue to be supported by GFS which in turn will be supported by Mariana Capital and the third-party service companies that have been working with GFS in recent years.

"We are delighted to have entered into this strategic transaction and welcome Steven Graham, Andrew Savill and Zane Tibble to Mariana Capital's structured products division," said Elton James, chief executive at Mariana Capital. "Mariana Capital, with its strong derivatives expertise, has a strategic commitment to grow this part of its business and we look forward to continuing to develop innovative new solutions and products in this area."

Arbuthnot Latham will retain the trading name "Gilliat Financial Solutions" which is not being transferred to Mariana Capital. Whilst GFS's existing business will not transfer to Mariana Capital, Mariana Capital will also separately be developing and providing its own new structured products to GFS's clients.

Arbuthnot Latham established the GFS business five years ago and it is now recognised as a provider of quality products in the structured products market.

London-based financial services firm Mariana Capital Markets was established in September 2009 by Daniel Hawkins and Elton James, two former colleagues at Lehman Brothers who saw an opportunity to provide boutique financial services in the post-2008 world. Three years later, they launched a distribution arm to offer Mariana products and services to a wider audience which included the creation of a structured investment product development and distribution business headed by former Merchant Capital managers, John Gracey and Tony King.