We met Gilles Martinengo, Managing Director of CFM Indosuez Wealth Management, to go into detail.
Can you explain what exactly a listing agreement is? Is it a customer base acquisition?
A listing agreement means that HSBC agrees to direct its customer portfolio to CFM Indosuez Wealth Management. It is not a customer base acquisition. Each client must give their approval before the transfer to CFM Indosuez Wealth Management. In addition, CFM Indosuez Wealth Management will of course apply the Group risk and compliance criteria prior to opening any accounts, and may refuse to open certain accounts if necessary.
What is the deadline for this agreement?
How much time will HSBC customers in the Principality of Monaco have to choose whether or not to be assisted by CFM Indosuez Wealth Management?
At this stage what I can tell you is that the listing process started from the announcement of this agreement on 19 October 2016. The transfer process will be implemented as soon as possible. HSBC and CFM Indosuez Wealth Management are doing everything possible in order that the transfer will take place in the best conditions.
If you are accommodating this customer base, I expect you are offering them the same conditions and the same services as their bank of origin. Does that not cause organisational problems for you?
HSBC conducted long discussions with a number of banking players in the financial centre. They chose CFM Indosuez Wealth Management because they believe that our establishment offers the best conditions for continuity of high quality service to their customers. I would like to thank them here, once again, for their confidence.
HSBC customers are used to local service as well as an international network, and that is what they will continue to have with us: they will benefit from the proximity of our wealth management specialists in Monaco – a staff numbering in excess of 360, 7 branches, the largest trading room in Monaco – and they will have privileged access to the global network of the Indosuez Wealth Management group, Crédit Agricole CIB corporate and investment bank, and all the expertise of the Crédit Agricole group.
Is external growth the objective of CFM Indosuez Wealth Management with this operation? Having access to a different type of customer base from CFM Indosuez’s traditional customer base?
This agreement is part of the strategy of the Indosuez Wealth Management group to strengthen its position in a wealthy investor customer base in its key markets, in Monaco and internationally. CFM Indosuez Wealth Management has a long tradition of presence in the Principality of Monaco which dates back to 1922. This operation confirms CFM Indosuez Wealth Management’s position of the leading bank in the Principality of Monaco and it reflects the desire of the Crédit Agricole Group, which backs us, to invest in the wealth management business. That is a guarantee of sustainability in Monaco.
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