German banking giant Deutsche Bank has decided to split its asset and wealth management division into separate units as part of the drive to as part of restructuring of key units.
As part of the reorganization, which was approved by the bank’s supervisory board, high-net-worth (HNW) clients will now be served by Private Wealth Management which will be run as an independent business unit within the Private & Business Clients business division.
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While, Deutsche Asset Management will become a stand-alone business division and focus exclusively on institutional clients and the funds business.
The head of Deutsche’s wealth management business, Michele Faissola, will be replaced by Quintin Price, a former Blackrock manager.
Christian Sewing, head of Private & Business Clients, will also assume responsibility for HNW clients on the management board. Fabrizio Campelli, currently head of group strategy, will run this business and will report to Sewing, the bank said in a statement.
As part of the restructuring, the bank will also split Corporate Banking & Securities (CB&S) business division into two business divisions.
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By GlobalDataEffective 1 January 1, 2016, a business division called Corporate & Investment Banking will be created by combining the Corporate Finance business in CB&S and Global Transaction Banking (GTB), the bank said in a statement.
CB&S’s sales and trading activities will be combined in a newly created business division called Global Markets. The name "CB&S" will cease to exist.
Together with the organizational restructuring, the bank has also decided to overhaul its management structure.
The bank has decided to scrap its group executive committee, a body that includes the bank’s top executives as well as regional and other representatives, and slightly expand its management board.
In addition, it will abolish 10 of the current 16 management board committees, and several top managers will shift positions or leave.
Effective 1 January 2016, all four core business divisions will be represented directly on the Management Board. A ten-person Management Board will be supplemented by four Senior Group Directors, the bank said in a press statement.
Jeff Urwin, currently co-head of CB&S together with Colin Fan, will join the Management Board effective 1 January 2016. Urwin will be responsible for Corporate & Investment Banking.
As a result of this reorganization, Stefan Krause, a long-term management board member with responsibility for GTB and the Non-Core Operations Unit (NCOU), will step down from the board effective 31 October 2015.
Werner Steinmueller will remain head of GTB and will report to Urwin. He will be proposed for election to succeed Krause as chairman of the Supervisory Board of Postbank.
Colin Fan, currently co-head of CB&S, will leave effective 19 October 2015. He will be succeeded by Garth Ritchie who will be responsible for Global Markets on the Management Board. Ritchie is currently head of equities.
The changes represent the first major attempt by John Cryan, co-chief executive of Deutsche Bank since July, to address complaints from shareholders that the bank is too complicated and not profitable enough.
Cryan said: "We want to create a better controlled, lower cost, and more focused bank that delivers long-term value to shareholders and great experiences to clients. The new structure and management team are essential to getting this done. I am delighted to welcome six new members to the Management Board to form the team that together will build a better Deutsche Bank."
