Bank of Singapore, the private banking arm of local lender OCBC, said that it has been granted an investment company licence to operate a wealth management subsidiary in Luxembourg.
The new subsidiary, BOS Wealth Management Europe Société Anonyme, is set to begin operations in the third quarter of this year, with an official opening in the second quarter of 2019.
It will be headed by Mr Anthony Adriano Simcic, who was previously the head of private banking for HSBC Private Bank in Luxembourg.
Given how Bank of Singapore currently serves its European clients from its Singapore headquarters and through its parent company OCBC Bank’s London office, the new Luxembourg-based business will help “bring its European business to the next level”.
It will be able to offer a comprehensive range of customised private banking solutions and investment advisory services to its ultra-high and high net worth clients in the European Economic Area (EEA) and the United Kingdom, it said in a media release.
The regulatory approval also “comes at an opportune time” given the “substantial increase” in the number of high net worth individuals (HNWIs) and wealth in 2016.
According to the 2017 Capegemini World Wealth report, the number of HNWIs in Europe rose by 7.7 per cent to 4.5 million – outpacing the 7.4 per cent increase recorded for the Asia-Pacific. In terms of high net worth individual (HNWI) wealth, Europe registered the third highest growth (8.2 per cent) by region. This was on par with the Asia-Pacific region and just behind Latin America and Africa.
“Since the global financial crisis of 2008, European high net worth individuals and family offices have shown increasing interest in Asia, and especially in Singapore, as an alternative wealth hub,” Bank of Singapore’s CEO Bahren Shaari said.
He added: “The establishment of BOS Wealth Management Europe S.A. in Luxembourg highlights our commitment to better serving high net worth individuals and family offices in the region. We are confident of replicating our successful business model – which is flourishing in Hong Kong and Dubai – so that it supports the growing affluence and rising economic activities in the European Economic Area.”
With more than 4 trillion euros in assets under management, Luxembourg is the largest investment fund centre in Europe and the second largest in the world, behind only the United States. Luxembourg is also the largest global distribution centre for investment funds, with investment funds offered in more than 70 countries worldwide.
Re-dessiminated by The Asian Banker from Channelnewsasia.com