Cazenove & Co is set to enter cyberspace. Harry Henderson, founder of its thriving unit trust business in 1988, is stepping down as managing director of its fund management division in order to develop e-commerce initiatives for his firm.

Henderson's activities will criss-cross the organisation. "There are a variety of applications which we shall be considering,' says senior partner Mark Loveday. "Harry has enormous enthusiasm for all this.' Tim Steel, a senior member of Cazenove's institutional broking team, will take Henderson's place in its fund management division. Cazenove faces a particular challenge as a result of its handling of a vast number of discreet client accounts. Many of them will expect extensive use of e-commerce initiatives: others will continue to want its traditional service. Even brokers such as Cazenove are set to face a big challenge from cut-price internet dealerships: "Traditional broking services are under severe threat,' said one analyst. Re-grouping in the sector has recently taken a major step forward via Old Mutual's £540m (E864m) bid for Gerrard Group. Initiatives which Harrison will be inspecting might include a real-time analysis of portfolio changes, plus high-speed analysis. Dealing services could also make more extensive use of the internet. Cazenove will need to arrange the financing of e-commerce initiatives on its own, assuming the firm remains determined to hang onto its partnership status. Cazenove's recent cash-flow has been strong. It expects to handle the redemption of a 1987 £32m loan stock issue, due in 2002, with ease. If e-commerce ends up consuming additional resources, the loan could easily be re-financed. Senior partners at the firm, who also include David Mayhew, would be well qualified to decide which of Cazenove's many options would be best. But their decisions will need to be made reasonably quickly.