GOING deeper into life and pensions business is National Australia,

parent of four banks including Clydesdale. The creation of a new life

company and the more likely route of making acquisitions and going into

joint ventures are now under active consideration.

Such a suggestion will immediately arouse speculation about a deal

with one of the remaining Scottish mutuals. The group was understood to

have looked at both Scottish Equitable and LAS earlier this year, but in

neither case was an offer made, and both recently found other

purchasers.

The high-powered team that National Australia has just appointed is

unlikely to pass up any future opportunities of that nature.

It is headed by John Windeler, a chief financial officer who has just

moved from Melbourne to London. He is assisted by three newly-appointed

executives drawn from the insurance industry.

He said they had a lot of fact-finding and exploration to do and that

the project was still very much in the development phase. ''We are

thinking about the long term,'' he explained, adding that acquisitions

were all about opportunity and price.

The new team comprises Michael Pinder, formerly with Prudential as a

marketing director; Jonathan Rashleigh, currently director of finance

and operations at Legal & General Investment Management, and Richard

Field, who was working on strategic development with TSB Group.

A fifth member, Thomas O'Donoghue, has apparently been working on the

project for some months.

''We will be considering alternatives for enhancing our successful

independent financial adviser operations,'' Mr Windeler said yesterday.

Outlining some of the possibilities, he emphasised that regardless of

whether it was decided to create a new life company or make

acquisitions, National Australia intended to maintain an IFA presence

for specific market segments.

He did not elaborate, but in some areas of personal finance the

constituent banks appear to think that working through independent

advisers is a plus point. The group is probably the only one still in

that position.

Clydesdale, in particular, has worked hard at extending its range of

financial services. Welcoming the latest development, a spokesman

commented: ''You can see we are getting serious about it now.''