Lombard Odier targets ASEAN’s super rich in tie-up
Swiss private bank Lombard Odier will seek to tap into the growing number of high-net-worth-individuals (HNWIs) in Southeast Asia via an agreement with Thailand’s Kasikornbank.
A recent report by RBC Wealth Management and Capgemini showed that Asia is leading the way in terms of the regional rise in number of HNWIs, and by the end of 2015 is expected to be home to the biggest community of wealthy individuals.
Through its partnership with Thailand’s second biggest bank by market cap, Lombard Odier will enter Southeast Asia for the first time, and will manage global investment funds on behalf of Kasikornbank’s private clients. Lombard Odier will also offer Kasikornbank clients offshore custodian services via Singapore.
The deal with Kasikornbank follows similar recent arrangements made by Lombard Odier with Australian wealth manager JBWere and Korea’s Kookmin Bank.
“This partnership with a leading Thai financial institution will allow us to enter the market in a significant way,” commented Vincent Duhamel, head of Asia, Lombard Odier.
Lombard Odier’s increased focus on Asia comes as Swiss private banks have been forced to give up much of the secrecy that they have historically been renowned for. Under the US Foreign Account Tax Compliant Act (FATCA), which went into force earlier this summer, non-US financial firms are required to automatically transfer data on their US clients to the Internal Revenue Service (IRS). Credit Suisse was fined US$2.6 billion by the US Department of Justice earlier this year after it pleaded guilty to conspiring to help US citizens evade taxes.
It is not just Swiss private banks that are increasingly targeting wealthy Asian clients, either. BNY Mellon in October announced a major initiative to expand its wealth management division out of Hong Kong.
