All articles by PBI Editorial
PBI Editorial
Bridgepoint looks for more acquisitions after Quilter
Private equity group Bridgepoint, which this month bought Morgan Stanley Smith Barneys (MSSB) UK retail wealth management business Quilter, has hinted at further acquisitions for its newest addition. MSSB agreed to divest Quilter, which has about £7.6bn ($11.8bn) of client assets under management (AuM), after deciding the subsidiary was not core to its central strategy, involving the ultra high net worth client segments
UK wealth industry asset pool hits $3.3trn
High net worth (HNW) private banks in the UK manage an estimated £886bn ($1.39trn), with the wealth management industry in total managing more than £2.1trn in private client assets, new research suggests. The research, conducted by consultants Scorpio Partnership, highlighted that these HNW banks employ 22,700 staff, and mass affluent banks working as wealth managers employ about 20,000 staff. When service providers, such as lawyers, accountants and the IT industry are included, the wealth industry is estimated to generate more than £30bn in annual revenues.
European-US tax deal simplifies FATCA obligations
The US has reached a landmark agreement with France, Germany, Italy, Spain and the United Kingdom on the exchange of tax information that will help simplify the collection of compliance data for the Foreign Account Tax Compliance Act (FATCA). One of the key parts of the agreement is to allow foreign financial institutions (FFIs) established in the five European countries to comply with FATCA reporting obligations by giving tax information to the authorities in that country, rather than directly to the Internal Revenue Service (IRS). The same will reply in reverse, so that the IRS will automatically collect and report similar information to the other countries with respect to accounts held by residents of those countries in the United States.
Wegelin assault sends warning to Swiss
Wegelin & Co has been crushed by a US legal and regulatory assault, sending shockwaves through the Swiss banking industry Which bank will be next in the firing line as the US steps up its war on banking secrecy and tax evasion
Credit Suisse’s 2011 income slumps, AUM suffers
Credit Suisse reported a 42% drop in pre-tax income in its wealth management business to $1.5bn and a 4% drop in average assets under management (AUM) to CHF792bn ($868bn) in 2011. The worlds fourth largest wealth manager said the AUM drop was due to lower equity markets and the lower average exchange rate of the US dollar and the euro against the Swiss franc
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BTG Pactual buys Celfin Capital for $ 245m
Brazilian wealth manager and investment bank, BTG Pactual, is to merge with Chilean financial service company Celfin Capital. BTG Pactual, the bank created by former UBS executives in Brazil, will pay $245m in cash and will give Celfins partners a 2.4% share of its capital. After the merger, BTG Pactuals Wealth Management division will have $28bn in assets under management, including $5bn in AuM from Celfin Capital.
Deutsche 2011 revenues rise, AuM drops
Revenues at Deutsche Banks private wealth management (PWM) division dropped 17% in the fourth quarter of 2012 when compared to the fourth quarter last year.
Brewin Dolphin Q4 commissions slump
Funds under management (FUM) at UK private client investment managers Brewin Dolphin increased by 3.8% in the three months to 31 December 2011, but commissions tumbled by 24% to £17.5m ($28m). Brewin Dolphin said the drop in the final quarter of 2011 was due to reduced market activity
Asian HNWIs more optimistic than non-Asians
Three-quarters of Asian entrepreneurs have seen an increase in their wealth over the past 12 months and 84% expect their wealth to further increase in 2012, a marked difference from non-Asian wealthy, new research suggests In comparison, only 49% of non-Asian entrepreneurs saw their wealth increase over the past 12 months and 70% expect their wealth to increase further over the next 12 months.
US pressure forces Wegelin to sell non-US unit
Switzerlands oldest private bank, Wegelin & Co has sold its non-US private banking business to Raifeissen Group in response to US regulatory pressure. Wegelin & Co will now be run as an independent private bank, Notestein Private Bank, within the Raifeissen group