LIVERPOOL’S private wealth management market is facing a shake-up with the entry of Cheviot Asset Management, at the same time as Deutsche Bank moves some functions to India.

Cheviot is opening its first regional office in the city, strengthening Liverpool’s reputation as the biggest UK centre outside London for the private wealth management sector.

It has recruited eight people from Deutsche Bank Private Wealth Management’s (PWM) Liverpool office – it says the eight were each approached separately – and is this week launching its operation in St Paul’s Square.

Deutsche Bank is recruiting for its PWM operation in Liverpool and elsewhere, but is also shifting some bank office functions from the Royal Liver Building to Bangalore, India. It is understood this will affect a small number of roles in Liverpool.

Deutsche Bank declined to comment, but Cheviot’s chief executive Michael Kerr-Dineen was not quiet about extolling the virtues about his firm’s “back to the future” model.

He believes Cheviot’s independent partnership structure offers the most suitable model for wealth management – in contrast to the trend of consolidation that has seen many firms move away from that model after being taken over by global banks.

That includes Investec’s purchase of Rensburg Sheppards, Deutsche Bank taking over Tilney, and Morgan Stanley’s acquisition of Quilter.

Mr Kerr-Dineen said: “Everyone promises high-quality service, but in practice the corporate model mitigates against that.

“When you are under the corporate structure, there’s an enormous amount of overt and covert pressure to use the in-house products.

“The nature of a top-quality private practitioner is they live and die for their clients’ interests. They will move to where the pressure doesn’t exist.”

Mr Kerr-Dineen speaks from experience, having launched Cheviot five years ago by leading 92 people out of UBS.

He said: “Within the wealth management community in Liverpool, there’s not a huge amount of turnover. It’s a very stable ship.

“In part, the reason is because there has been a lot of similarity among the firms in Liverpool. There’s not a real alternative.”

He added: “Our growth plans for Liverpool are very ambitious. We are already experiencing fast organic growth, which I believe is aided by our partnership model, which frees up staff from any conflicts of interest. This makes it an attractive proposition for staff and clients alike.”

Max Steinberg, chief executive of economic development agency Liverpool Vision, welcomed Cheviot to the city.

He said: “Cheviot’s decision is recognition of the pre-eminent position Liverpool holds with regard to wealth management expertise, and is a vote of confidence in the city’s long-established track record.

“We are delighted that Liverpool continues to attract businesses of this calibre – it sends out a very positive message to other professional services organisations seeking to relocate or expand into new markets.”