Manulife has signed a 15-year distribution deal with Standard Chartered to offer its mandatory provident fund (MPF) product to the bank’s customers in Hong Kong.
Under the agreement, Manulife will purchase Standard Chartered’s existing MPF and Occupational Retirement Schemes Ordinance (ORSO) businesses, and the related investment management unit.
The deal is aimed at further boosting Standard Chartered’s wealth offering and its position as a leading distributor of wealth management products in Hong Kong in addition to strengthening Manulife’s pension business in Hong Kong.
Subject to the receipt of regulatory approvals, the agreement is scheduled to close in the first half of 2016.
The partnership will provide Standard Chartered’s individual and business customers in Hong Kong with greater investment choice, access to market leading technology platforms and high-quality customer service.
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Standard Chartered Group head wealth management Judy Hsu said: "The partnership demonstrates our commitment to provide our clients with a holistic proposition, including retirement services, to meet their financial goals.
"It is a further step in executing on our global wealth strategy, to leverage our strong franchise and distribution network to deliver quality wealth solutions to our clients."
Manulife Asia president and CEO Roy Gori said: "This deal complements Manulife’s recent acquisitions in Canada and the United States and accelerates our strategy to grow our Asia and wealth management businesses."
Standard Chartered Bank (Hong Kong) CEO May Tan said: "This partnership will strengthen our proposition in retirement services which remains a core product of the bank."
Financial terms of the deal have not been disclosed.