Arbuthnot Latham and Co and Mariana Capital Markets have entered into a strategic co-operation agreement in relation to the structured products business of Arbuthnot Latham, which trades under the name Gilliat Financial Solutions.
Gilliat has retained its trading style under Arbuthnot, however the ongoing support of the products in issuance will fall under Mariana’s remit.
Under the agreement, Gilliat will cease to provide new structured products with immediate effect.
Gilliat’s current structured products that are currently in the market but have not yet closed will be supported by Gilliat and Mariana Capital.
Gilliat will continue to act as plan manager for the historical book of existing Gilliat’s products until maturity between 2014 and 2021.
Existing Gilliat products will continue to be supported by Gilliat which in turn will be supported by Mariana Capital and the third party service companies that have been working with Gilliat in recent years.
Arbuthnot Latham will retain the Gilliat’s trading name which is not being transferred to Mariana Capital. Whilst Gilliat’s existing business will not transfer, Mariana Capital will also separately be developing and providing its own new structured products to Gilliat’s clients.
The co-operation arrangement follows on from three senior Gilliat employees’ - Steven Graham, Andrew Savill and Zane Tibble - decision to join Mariana Capital, with immediate effect.
Elton James, chief executive at Mariana Capital, welcomed the trio of senior employees and entry into the strategic transaction.
He said: “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.”
James Fleming, chief executive at Arbuthnot Latham, said the firm was proud to have supported Gilliat from inception in the aftermath of the financial crisis to its present position.
“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.”