Merchant Capital has launched Merchant Wealth, a private client wealth management service.
The new distribution channel will raise capital for Merchant Capital's structured products and funds and will be run in-house by Tom Evans.
Evans previously acted as consultant to a number of wealth management businesses after selling his own company, Bishopsgate, in 1999.
The creation of Merchant Wealth follows a similar launch by parent company Merchant House Group in January 2009. That subsidiary, Merchant Wealth Management, was dissolved in the summer of 2009.
A spokesperson for Merchant Capital said the most recent iteration of the division will be more likely to succeed as it will be run in-house.
He said: "Although the name is similar the offering is different. Wealth Management outsourced its business functions. It became clear after a while that its business model was not working.
"The business was wound down during 2009 and the company decided to wait until the time was right to run a wealth management business in house.
"The new wealth management business has been launched to support the demand for Merchant House's existing product offerings and is complementary to the group's IFA business."
The move follows a difficult time for the company. Its shares fell to a five-year low on 16 February after the FSA served a notice on Pritchard Stockbrokers, the custodian of Merchant Capital's structured products arm.
Merchant has since appointed a new custodian, Reyker Securities, and reassured clients regarding the safety of their monies.
Havensrock Thrive App
Don’t ‘leave it all on the pitch’
21 firms in total
PA360 2019 conference
Latest news and analysis