Estonian bank LHV is to fully set up separate operations in the United Kingdom.
LHV has a branch in the U.K., but this has not been distinct from its Estonian operations via AS LHV Group.
The bank told the Estonian stock exchange the move would allow for better compliance with regulatory and supervisory requirements.
In the future, AS LHV Pank will focus on servicing Estonian customers and its U.K. equivalent is to provide banking services to international payment intermediaries.
A clear separation between two businesses will enable the bank to better highlight financial results and the value proposition of the new bank for investors, LHV says.
The U.K. operation is to be a 100% subsidiary of AS LHV Group and will be set up soon, with staff, capitalization and license application with the U.K.’s Financial Supervisory Authority (FSA) to follow.
LHV has operated its U.K. branch, located on Old Street, just north of the City of London, since early 2018 and the soon-to-be-established U.K. operation will bring no changes for existing customers there, it says.
LHV Group’s key subsidiaries are banking arm LHV Pank and asset management arm LHV Varahaldus.
LHV employs nearly 500 people and has a total of over 235,000 clients.
Pension funds managed by LHV have more than 183,000 active clients.
LHV’s U.K. branch at present offers banking infrastructure to 130 international financial services companies. (ERR/Business World Magazine)