All articles by PBI Editorial
PBI Editorial
JV hit by big Citi wealth outflows
The largest global wealth management force ranked by financial adviser headcount and a top three player by client assets is being formed under the new joint venture announced by Morgan Stanley and Citigroup. Morgan Stanley is moving its high-end wealth management operations at home and abroad, including Banque Morgan Stanley in Switzerland, into the venture, to be called Morgan Stanley Smith Barney
Geneva banks big losers in $50bn scandal
Private banking reputations in the US and across Europe have been damaged by the alleged $50 billion Ponzi swindle by US financier Bernard Madoff Private banks in Geneva, which have routed billions of dollars of client assets into hedge funds in recent years, are centrally involved in the alleged $50 billion Ponzi scheme fraud by US financier Bernard Madoff.
Race for share of booming CEE market
Wealth management firms in Central and Eastern Europe (CEE) are beginning to redefine their offerings in an attempt to exploit the booming levels of wealth creation seen in Poland, the Czech Republic and Hungary over the past few years. The CEE market, characterised by a mix of mass affluent and full-scale private banking offerings, is also witnessing renewed interest from mid-tier universal banks such as KBC, UniCredit and Erste, particularly in Poland.
Chinese private banking gaining currency
Unsurprisingly, private banks both domestic and foreign are ramping up their efforts to gain a foothold in the region. The big boys have long had operations in China in preparation for an easing of regulatory pressure, and are now applying for renminbi-denominated licences in order to better attract Chinese clients. Deutsche Bank (China) began operation on 2 January following approval from the China Banking Regulatory Commission (CBRC) to incorporate in Beijing and will now offer renminbi-denominated products and services across its branches in Beijing, Shanghai and Guangzhou.
Wall Street heavyweights back wealth venture
Fieldpoint Private Bank & Trust is receiving extensive backing from former Merrill Lynch executives, as well as other senior figures in banking and business.A motivation for the new venture is understood to be to tap into the dissatisfaction among the super-rich, many of whom have worked on Wall Street, with the level of service from existing private banks as well as product-pushing trends in the wealth industry.Fieldpoints president and CEO, Kevin McCabe, said: I would describe our firm as providing the focus and expertise of a private bank, the personalisation and membership feel of a family office and the local access and responsiveness of a community bank.David Komansky, William Schreyer and Dan Tully, three former Merrill Lynch chief executives, have agreed to back the bank, which promises an extraordinary level of personalised service to clients
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Hedge fund fees on the slide
A potential shakeout appears to favour the major hedge fund managers and those with a proven record of performance.New hedge funds are being set up at the slowest pace since 2003, with almost all of the $164 billion of new investments going to managers with proven records, according to Hedge Fund Research, an industry tracker based in Chicago
EU pressures Singapore to ease bank secrecy laws
Singapore may bow to European demands to ease its strict bank secrecy laws, a major driver behind the city-states rapid expansion as the leading Asia-Pacific offshore banking centre for high net worth investors.This follows a persistent campaign by the European Commission to persuade Singapore to co-operate in policing international private investment flows Brussels fears that Singapore is becoming a haven for money fleeing the EU following the 2005 adoption of its savings directive, which requires member states to subject offshore savings held by EU nationals to withholding taxes.It has asked Singapore to introduce financial transparency measures that would help identify suspected tax evaders and terrorist money movements, although the Asian centre has up to now resisted making any concessions, worried that it could undermine its flourishing private banking business.Latest indications are that Singapore, acceding to EU pressure and wanting to maintain its trade agreement with Europe, may selectively ease its bank secrecy laws No official statement on its position has so far been issued.Members of Singapores Parliament have just held talks with their counterparts from the EU and signalled that they will look into possible changes to banking secrecy rules, according to media reports in Asia.Glyn Ford, a member of the European Parliament visiting Singapore as part of an EU delegation, said that Singaporean legislators are planning changes to deal with these issues
Singapore secures private banking
By pumping $14 billion into UBS and Merrill Lynch to replenish their capital, the Singapore government looks to have secured the future of the city-state as Asias premier international private banking centre Both have been badly mauled by the US subprime credit crisis, writing off billions of dollars in debt, and have now turned to sovereign funds for help.The implications of Singapores investment in UBS and Merrill seem clear, bankers suggest
Mirabaud gears up for growth
Geneva private bank Mirabaud & Cie has unveiled a plan to double its size in coming years, boosting assets under management to CHF50 billion ($44 billion) by 2015. Thierry Fauchier-Magnan, chairman of Mirabauds executive committee declared, We want to grow by 10 to 12 percent each year, which equates to a doubling of client assets every 6 to 7 years
More private bankers depart in industry shake-up
The restructuring of much of US wealth management is resulting in a steadily lengthening list of casualties among top private bankers. Peter Scaturro is leaving as head of global wealth management at Goldman Sachs, after only 18 months in the role At the same time, Frances Aldrich Sevilla-Sacasa, head of Bank of Americas blue chip private client unit, US Trust, has left.