Regulator approves Arbuthnot sale

The Arbuthnot Banking Group (ABG) said City watchdog, the FSA, had given regulatory approval for sale of its Arbuthnot Securities investment bank to Westhouse Holdings.

It now expects the £1.9m deal, which it agreed in November, to go through on 20 January.

The completion of the sale will be some consolation to ABG which will have to swallow £8m of losses from the investment bank in its full year results after it failed to get regulatory approval for the deal before the end of the year.

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"Despite exhaustive efforts we have been unable to agree a structure which meets the regulatory requirements and falls within our risk appetite; consequently the joint venture will not be proceeding as expected," ABG said last week before the deal got the thumbs up.

Last week the firm said it expected pre-tax profits for continuing operations in 2011 to be around £5m.

Arbuthnot Securities results for the year will be reported as discontinued operations.