A decision that could result in the transfer of Hibernian Investment Managers' (HIM) €7 billion Irish fund management operations to the UK could be taken as early as Friday.

HIM, which is part of the UK Morley Fund Management operations of its parent company, Aviva, has examined the Irish business and has prepared drastic proposals for consideration by its board of directors when they meet tomorrow.

The Irish management team is understood to be preparing a counter proposal, arguing that the business, with 59 staff, should be retained in Ireland.

It is expected to argue that HIM needs further investment from its UK parent.

Speaking to The Irish Times yesterday, HIM chairman Mr Dean Stannard, who is leading the review, said that, if the review's findings were approved by the board of directors, a consultation process would be initiated with its Irish staff.

"There will be discussions with local management and we will look at any alternative proposals that they may come up with," Mr Stannard said.

He would not put a timescale on the length of any eventual deliberations.

Mr Gerry Shanahan of the AMICUS Manufacturing Science Finance trade union, which represents most of the HIM staff, described the proposal to close HIM as a "knee jerk" reaction by its parent.

"Significant consideration will have to be given to all possibilities," he said.

HIM staff are contracted to the Hibernian life and general group, even though the fund management arm is a separate company.

This would signal that even if the business were to be closed, staff would be able to transfer back to the Hibernian group, although some may opt for voluntary redundancy.

Morley manages total assets worth £115 billion sterling (€161.2 billion), which includes funds operated out of Boston, Warsaw, Melbourne and Singapore.

It would be relatively easy for the group to absorb the Irish fund management operations.

In a statement, HIM noted the widespread consolidation of fund management expertise into major financial centres in recent years as part of a drive to benefit from economies of scale and to reduce business costs.

"The implications for staff are of prime importance in this matter. Hibernian and Morley have been working and will continue to work closely with its staff union representatives in this regard," according to the HIM statement.