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October 10, 2019

Credit Suisse mulls return to US wealth management

Swiss wealth manager Credit Suisse Group is weighing a return to US wealth management after four years, reported Bloomberg.

Credit Suisse offloaded its US brokerage to Wells Fargo in 2015 following charges of aiding US citizens to dodge taxes.

Credit Suisse was fined around $2.6bn for tax evasion.

Wells Fargo struck an exclusive recruiting arrangement, enabling relationship managers and clients in Credit Suisse’s US Domestic Private Banking business to join Wells Fargo Advisors.

Under CEO Tidjane Thiam, Credit Suisse later altered its strategy to focus on the Swiss and Asian wealth management market.

According to people familiar with the matter, Credit Suisse now plans a new Miami base with an aim to bring $15bn from affluent Latin America customers.

The Miami office is expected to be staffed by 30 employees, including control and support staff.

Currently, talks on the matter are said to be at a preliminary stage. However, there has been no confirmation on the issue from Credit Suisse.

The international wealth management business of Credit Suisse prioritises the Middle East, Latin America, Europe, as well as Africa markets. The business is currently headed by Philipp Wehle.

Wehle succeeded Iqbal Khan, who defected to rival UBS recently.

According to the report, the latest move is Thiam’s latest strategy to drive growth in wealth management amidst shrinking margins in Europe triggered by negative interest rates.

In announcing the move, Bloomberg cited BCG data that positions the US behind Switzerland, Hong Kong, and Singapore in the area of offshore wealth.

 

 

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