Standard Bank Private Clients is to be renamed Wealth and Investment (WI) as the offshore bank moves to adapt its offering to the evolving needs of its customers, as well as to align with global standards for high-net-worth wealth management. The change is a reflection of a shift in strategy to provide more holistic financial planning and advisory around wealth creation, lifestyle requirements, wealth preservation and legacy and philanthropic ambitions, said Deon de Klerk, head of wealth and investment, Africa and International, in a statement. The shift is a response to changes in the high net worth market and will position Standard Bank more closely with its international competitors.
WI will offer the integration of specialised lending, risk solutions, transactional banking, trust and fiduciary services and investments, including structured products.
The investment offering will include stockbroking, fund solutions and portfolio management through Melville Douglas, the bank’s boutique investment management arm, and its investment services which includes structured products and deposits sold on a discretionary and advisory basis.
Melville Douglas established itself as one of the main investment offerings in South Africa prior to becoming a wholly owned subsidiary of Standard Bank in 2001, and manages over $4bn of client assets. It follows an open architecture approach, said de Klerk.
Standard Bank WI manages in excess of $12bn worldwide. Seven years ago, Standard Bank Private Clients was separated from private banking to cater to the wealth management needs of the bank’s high-net-worth clients who are different from the target market falling under private banking.
Private banking caters to individuals with an annual income of at least $60,000 whereas WI will service clients who have the potential for investable assets in excess of $1m. The bank has a footprint throughout South Africa and in Kenya, Nigeria, Mauritius, London and Jersey and caters to onshore and offshore financial planning, said de Klerk.
Standard Bank structured products is led by Chris Berry, who replaced Herman Wessels as head of structured products at Standard Bank Offshore Group in May 2014.
Standard Bank has launched over 100 structured products through Standard Bank Offshore, its offshore subsidiary in Jersey and Isle of Man, of which 72 products are still live, according to SRP data. Of these, 71 products are part of the bank’s Quantum Plus deposit range and the bank’s first structured note (Defined Return Note 1), a three-and-a-half year fully protected digital play linked to the FTSE 100 index with a minimum investment required for non EU residents of £20,000, and £100,000 for EU residents. This product struck on February 6.
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