Twenty-four structured products were added to SRPs Belgian database during May. Seven products were denominated in US dollar while 17 out of the 24 products were linked to equities. The changing face of the Belgian market was revealed by the maturing structured products, forty in total, including offerings from Argenta, Citibank Belgium (now Beobank), Centea (now Crelan), Dexia Asset Management (now Candriam), KBC, Record Bank and Winterthur Belgium (now AXA Bank Belgium), with many of the original providers now under new ownership.
VDK Spaarbank (VDK) launched the Sustainable Switch Note 2023 an eight-year EMTN linked to the Finvex Sustainable & Efficient Europe 30 index which was issued via the Codeis Securities special purpose vehicle (SPV). It is the first time VDK has used Societe Generale’s SPV; previous products where issued via BNP Paribas’ SecurAsset.
Although the use of SPVs for structured products is not necessarily a legal obligation in Belgium, many distributors, including Argenta, Crelan and Delta Lloyd Bank, see them as a convenient vehicle for issuing their products. “For us, as a regional savings bank it is not always possible to set up our own emission program because the costs would just be too high,” said Frank Vereecken, director in the securities department at VDK. “That’s why we are looking to collaborate with parties who offer this service.”
Meanwhile, independent advisory platform Arlis Investments was declared bankrupt by the commercial court of Antwerp on April 16, 2015.
Managing director Han Coppens disappeared in February amid accusations that he had run off with the savings from a number of his clients, before handing himself in at his local police station in Mortsel according to reports in the Belgian press. The court appointed a trustee. The investigation is still underway said lawyer Sven Mary, counsel for the accused. “My client will fully cooperate.”
Between 2011 and 2013 Arlis Investments marketed a number of structured solutions which were wrapped as Tak23 life insurance products while sister company AIK Group Investment Solutions, a collaboration between Arlis Investments and equity researchers Kepler Cheuvreux also distributed a number of structured products in Belgium.
Over in the Netherlands, four new tranche products were issued in May.
Kempen launched a second tranche of the VL Index Garantie Note AEX 14-20 which was first issued in September 2014. The capital-protected note participates for 100% in the local AEX index, subject to 12 months back-end averaging. “The first tranche sold out and we see a continued demand for Index Garantie Notes,” said Laurent Guntenaar, director structured investments at Kempen & Co.
Dutch private bank Staalbankiers, which is part of the Achmea group, was ordered to pay damages of €51,200 to a private investor following intervention by the Complaints Institute for financial services (Klachteninstituut Financiële Dienstverlening – Kifid). The damages were awarded on the grounds that Staalbankiers had advised the investor to include a large percentage of structured products, including the Rabo China Note 2004 – 2009, in his portfolio without informing him about the risks according to Kifid.
Finally, four products were added for Luxembourg, including BGL BNP Paribas’ Autocallable SRI Note 2020, a five-year 90% protected product linked to the Ethical Europe Equity index and three offerings from KBL European Private Bankers.
The full Dutch and Belgian market reviews for May will appear shortly.
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