All articles by PBI Editorial
PBI Editorial
Crown your private banking champions
Private Banker International is now accepting nominations for its annual awards ceremony in October. The awards, now in their 19th year, have become synonymous with the most distinguished private banking performers, and are known as the industrys most prestigious accolades All of the details on the awards categories, and how to nominate your own and other banks, are provided on page three.
Wegelin’s US stance strikes a chord
There are so many issues right now for clients and we have a duty as a private bank to address these topics and come up with possible answers. Our position with regard to US citizens and securities is a good example of this and has attracted some media attention in recent months we advised all of our clients to sell their US securities because of concerns of the regulatory risk with regard to the US Estate Tax Act.
Picking winners in turbulent times
PBI drew on the experience of a 10-strong judging panel with experience from across the global industry to choose this years wealth management championsTitien Ahmad, head of Asia-Pacific editorial, VRL Financial NewsTitien brings a wealth of experience within the financial services industry to the panel She has delivered numerous executive briefings, meetings for research clients and industry conferences and is regularly quoted print, radio and television news services on developments in the Asia-Pacific financial services industry.Zahir Bokhari, partner, financial services, DeloitteZahir is a partner in Deloittes Financial Services Industry practice working with listed clients in the retail banking and investment banking sectors, experienced in IFRS and US GAAP
Odyssey seals Third Rome deal
Luxembourg-based Third Rome, a financial adviser specialising in Russian clients, has gone live with Odysseys TripleA Plus private banking platform after a three-month implementation period The implementation was carried out by consultancy Accenture.TripleA Plus is designed to enable automation of the investment process, allowing relationship managers to focus more on client servicing and research.Third Rome is an umbrella organisation for several independent companies which provide financial advice for high net worth and ultra high net worth individuals It was established in March 2009 by former managers of Renaissance Investment Management, another Odyssey client.We had an excellent experience with Odysseys TripleA Plus platform and a very good relationship with the project teams, said Maxim Yanpolsky, Third Romes COO.This of course helped us decide for Odyssey
Barclays creates deposits sweep products
Barclays Wealth has launched a product which allows clients to earn extra interest from unused deposits in their brokerage accounts.The deposits have access to $10 million in Federal Deposit Insurance Corporation (FDIC) guarantees and are part of Barclays Wealths cash sweep programme, Insured Network Deposits (IND).Cash available in brokerage accounts is swept into interest bearing accounts at one or more IND network banks across the US, each up to the FDICs insurance limit The limit for an individual is $5 million, while joint account holders have access to $10 million in FDIC insurance.Interest rates are tiered depending on account balances.This program offers clients the ability to invest significant amounts of their excess cash without compromising on the traditional insurance guarantees provided by single-bank FDIC protection, said Paul Feidelson, head of the investment & product office at Barclays Wealth in the Americas
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Bank of America invests in Merrill brand
Bank of America (BofA) has re-launched the Merrill Lynch brand just over a year after the banks highly controversial, politically engineered $20 billion acquisition of the group at the peak of the financial crisis last September BofA has resurrected MLs famous bull icon as a part of a major marketing push called help2, launched earlier this month
Bessemer ups web game
Bessemer Trust has launched a new website for clients featuring consolidated information and tax details across multiple accounts.It features a dashboard design which consolidates the total value of the account on the homepage.Other options include total value over time, which provides a snapshot of the relationship with Bessemer since inception An overall asset allocation feature reports the current client asset allocation across the banks asset classes.An account section offers information about multiple Bessemer accounts, including performance and tax information details The tax functionality includes calculations of estimated taxable income, along with capital gains and losses
HSBC glitters at 19th annual awards
HSBC Private Bank was named the Outstanding Global Private Bank at the VRLPrivate Banker International 19th annual awards in Singapores Fullerton Hotel Over 170 bankers from across the world attended the event to see the industrys leading lights recognised for their achievements in wealth managementOUTSTANDING GLOBAL PRIVATE BANKHSBC Private BankRemarkably, HSBC Private Bank has broken into the top five of PBIs global ranking of private banking, underlining its position as a major challenger to the established hierarchy.The bank moved from sixth to fifth place in the rankings for the first half of 2009 with $345 billion of AuM ahead of Citi, which recently sold its Smith Barney business to Morgan Stanley.Of course, the brand strength of its parent has allowed HSBC Private Bank to hold firm during the financial crisis at a time when many wealth managers have been damaged by scandal and hurt by declining client confidence.In 2008, when many shed client assets, HSBC had a net inflow of $24 billion, equivalent to 5.7 percent of its end-2007 assets under management total.In a period where strong balance-sheets and a diversified business base are so vital, HSBC benefited from the flight to quality seen across all sectors But it should not be forgotten what a remarkable performance HSBC has staged for it was only back in the 1990s that the group decided to make a strategic decision to become a major player in global wealth managementFinalists: Credit Suisse, Barclays WealthOUTSTANDING PRIVATE BANK ASIA-PACIFICStandard CharteredStandard Chartered Private Bank has been, without doubt, the fastest-growing player in private banking, not least in Asia
Singapore edges towards white list
Singapore has amended its tax law to comply with international standards, paving the way for its inclusion among the Organisation for Economic Cooperation and Developments list of white-listed jurisdictions The state is currently on a grey-list of institutions that have not substantially implemented OECD standards on information exchange Singapores newly passed Income Tax Bill removes the need for there to be a domestic interest for it to co-operate with foreign requests for information on tax evaders
Profits slip, but industry remains healthy
Private banking profitability has undoubtedly been hit by the financial crisis, but less so than other disciplines within the banking industry, according to recent research Banks in North America and Latin America fared best, while steep declines in assets under management hit Asian wealth managersPrivate banking profitability declined from 36.4 percent to 30 percent in 2008, underlining the industrys resilience in the face of one of the most testing periods in financial history North American businesses performed the strongest, according to research from Boston Consulting Group (BCG) which shows the regions private banking profit, measured by operating profit as a percentage of revenue, rose from 34.7 percent in 2007 to 38.2 percent in 2008.The wealth management industry has weathered the storm better than most other financial services sectors, but it was hardly unscathed, the report said