With government pressure on Royal Bank of Scotland to reduce its investment banking division, there have been reports that the UK bank is planning to sell the broking business it inherited from ABN Amro, Hoare Govett.

Analysts said that RBS's decision is fuelled by government pressure to reduce its investment banking division following the publication of the Vickers report by the Independent Commission on Banking, which calls for UK banks to ring-fence their retail and wholesale banking divisions.