US-based banking group JPMorgan has announced plans to launch a “significant” wealth management business in Luxembourg in a bid to better serve its clients in the European Economic Area.
At the same time, the bank also intends to strengthen its capabilities in treasury, custody and fund services.
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The bank also announced a restructure, which will result in the merger of its London-based business J.P. Morgan International Bank (JPMIB) with J.P. Morgan Bank Luxembourg (JPMBL).
“As part of the long-planned restructuring, the firm proposes to merge two legal banking entities into one allowing for seamless client support for these specific businesses across the European Economic Area,” the New York-based lender said in a statement.
JPMIB is supervised by the Prudential Regulation Authority and Financial Conduct Authority, while JPMBL is regulated by the Commission de Surveillance du Secteur Financier and the European Central Bank.
JPMIB will be dissolved post deal completion, with its assets and liabilities such as client accounts and legal agreements to be handed over to JPMBL.
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By GlobalDataThe merger is expected to close early next year, subject to regulatory nod.
Previously, several other firms have restructured their London operations in Brexit contingency planning. Earlier this year, Columbia Threadneedle Investments transferred assets from its UK-domiciled funds to its Luxembourg range amid Brexit fear.
