All articles by PBI Editorial
PBI Editorial
Sustainability index challenges credit ratings on bonds
A countrys economic sustainability could serve as a much better barometer of future economic performance as traditional credit ratings have reached their limits and no longer serve as leading indicators, research from Bank Sarasin has suggested. The sovereign bonds of many Southern European countries have seen prices collapse under the pressure of the European debt crisis. Sarasin said the “traditional” credit ratings of the big agencies were repeatedly cut, virtually in parallel, with the decline in the sovereign bonds’ value, acting more as a barometer of current trends, than an indicator for the future.
Wealth industry IT spend to hit $32bn by 2015
Global spending on IT by the wealth management industry will top $32 billion by 2015, a growth rate of almost 7% over a five year period, research from Ovum predicts. In particular, the high net worth banking and financial planning sectors of the global wealth management industry will increase spending by 8 % from the beginning of 2011 to the end of 2015.
Industry ‘far from full recovery’: McKinsey
European wealth managers increased assets under management (AuM) in 2010 on average 9% but the industry is far from a full recovery with onshore mid-sized businesses feeling the most pressure to perform, research has found. McKinseys annual private banking survey reported only 2 percent of AuM in 2010 came from net new inflows with the rest derived from market appreciation
US regulators probe Credit Suisse on US clients
Credit Suisse confirmed US authorities are investigating cross-border private banking services provided to US citizens as part of a wider industry probe The Swiss bank said it had been responding to requests for information, including subpoenas, from the US Department of Justice and other US authorities In February, Credit Suisse told PBI it was co-operating with US authorities in their investigation against four bankers charged with conspiring to help US clients evade paying US taxes by hiding money in secret Swiss accounts.
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StanChart Latin sale signals M&A gathering pace
Standard Chartered Private Bank is looking to sell its Latin American wealth operations, the latest in a spate of sales as private banks look to shed non-core operations due to tough trading conditions.
HK launches private wealth management qualification
The Hong Kong Securities Institute (HKSI) is to launch a private wealth management training programme and develop a set of competency guidelines. The HKSI is the first in Asia to offer the Certified International Wealth Manager Programme in association with Swiss-based Association of International Wealth Management. The competency guidelines will be based on global best practices and local requirements that are relevant to the Greater China market
UK regulator to scrutinise series of mis-selling and management failings
The UK wealth management industry is bracing itself for an unprecedented bout of regulatory scrutiny over its poor treatment of clients. In one case, a Top Five global wealth manager, with an extensive British presence, may be fined tens ofms of pounds over mis-selling and management failings in ensuring know-your customer (KYC) and client suitability standards were maintained, according to a source who did not want to be named. The extent of the industry-wide problem has just been underlined by the Financial Services Authority (FSA) in a damning report on standards in the wealth industry.
Kleinwort Benson completes Close Offshore Group buy-out
Kleinwort Benson has completed the purchase of Close Offshore Group (COG). The acquisition, which was announced in March, is for a cash consideration of £26.4m ($43.3m). It includes COGs private banking, fund administration, fund management, trust and asset management businesses across Guernsey, Jersey and the Isle of Man.
Senior people moves
Credit Suisse Deutsche Bank Private Wealth Management Rothschild Private Banking & Trust J.P. Morgan Private Bank BNY Mellon Asset Management HSBC Private Bank Standard Bank OffshoreMerrill Lynch Wealth Management UniCreditDeutsche Bank Julius Baer Citigroup Barclays Wealth Bank Sarasin Clariden Leu Syz & Co UBP Private Banking Merrill Lynch Wealth Management HSBC Private Bank HSBC Alternative Investments Butterfield Private Bank Santander Private Banking HSBC Global Asset Management Rockefeller Financial Edward Jewell-Tait Farooq Choudhury Reinhard Krafft Rebecca Lum Alan Harden Chris Marquis Gareth Morgan Mike Buhre Mark Hucker Leila Alameddine Igor Ryabov Tim Knoll Yelena Loginova Mark Matthews Goh Kwang Meng Goh Siew Leng Frances Lim Thomas Roiz Gianluca Grissini Urs Emmenegger Erich Pfister Daniela Lohner Katia Coudray Cornu Alan Mudie Shereen Ghobrial Utku Balik Edmond Carton Russell Prior Simon Jennings Mark Glover Danny Dixon Calum Brewster Sue Hayes David Wickham John O’Hara