Wealth manager and Chartered Financial Planner Brooks Macdonald has bought the Channel Islands wealth management and funds business of Lloyds Bank International for £9.63m.

The money will be paid in cash from Brooks Macdonald’s existing reserves and completion of the deal is expected in the fourth quarter, subject to regulatory approval.

Brooks has a growing Financial Planning division and is a Chartered Financial Planning firm. It also provides DFMs and other funds and investments.

Brooks will acquire 100% of the share capital of Lloyds Investment Fund Managers Limited and the investment management assets and investment management client relationships of Lloyds Bank International Limited.

Brooks has also signed an agreement for the two companies to introduce services to each other’s clients.

Lloyds Bank International’s wealth management and offshore funds business serves affluent and high net worth client base and has a number of intermediary It has £1bn in Funds Under Management split between an investment management business with £500m in FUM serving 1,200 portfolio clients and a funds business with £500 million in FUM, mostly distributed through 50 IFAs and serving 10,500 mainly personal clients.

Brooks says the deal is a “compelling move” which helps to transform its international business and increases international FUM by up to two-thirds to £2.5 billion as well as adding 1,200 private

It also adds multi-asset and fixed income fund capability and strengthens the group’s international intermediary distribution

The combined business will be based in Jersey and be rebranded as Brooks Macdonald International. A number of current Lloyds staff will be offered roles in the combined

Caroline Connellan, chief executive of Brooks Macdonald, said: “Since his appointment as CEO of International last April, Andrew Shepherd and his team have led the reinvigoration of the business, delivering for clients, advisers and trustees.

“The acquisition of Lloyds’ offshore wealth and funds business adds to this transformation, bringing greater scale, new capabilities and expanded distribution reach.”