A new bank targeting independent financial advisers is to be launched with the former chief executive of IG Index, Nat Le Roux, earmarked as chairman.
A team led by Adam Habib, the former head of structured retail products at Lehman Brothers and now chief executive of Jubilee Financial Products, is believed to be looking to raise as much as £50m to launch the bank.
The group is thought to be close to securing a license but needs additional funding. A source said: "They may find it tricky to raise more cash. The rush to launch banks has passed."
The bank, which is yet to be named, plans to take in cash deposits from the IFA community. A spokesman for Jubilee declined to comment.
In February, Sandy Chen, a former banks analyst at Panmure Gordon, ditched plans to raise £200m for the launch of Albion Bank, after investors gave it the thumbs down. The bank, which also failed to lure former Bank of Scotland chief executive Sir Peter Burt as chairman, has since said it plans to secure alternative funding away from public markets.