The firm has received FSA approval and Hoban is being joined by two former Bestinvest advisers, Ben Howland and Edward Tudor.
Hoban left Bestinvest in March 2007 while Howland, the son of deputy chairman Peter Howland, and Tudor departed towards the end of the year.
Hoban confirmed the launch to Money Marketing but says that full details will be released in the coming months.
London Wealth Management marks the second IFA company to be created by former Bestinvest staff in recent months.
Earlier this year, Bestinvest head of strategy and acquisitions Dominic Cummings announced the launch of his own IFA firm, called Intethic, which will initially focus on pensions and asset consolidation.
Cummings is working alongside former Bestinvest head of compliance Jonathan Purle while former head of communications Justin Modray was involved in the launch on a consultancy basis but is not directly involved in running the company.