Tag: Finance

  • Revolut Expands as a Bank

    Revolut Expands as a Bank

    Europe’s most valuable fintech has already amassed 18 million app users worldwide. Some of those are about to become bank customers.

    The London-headquartered neobank is launching as a bank in ten additional European markets, lifting the number of countries it operates in to 28, it said in a statement. The challenger bank can now protect client deposits up to 100,000 euros in Belgium, Denmark, Finland, Germany, Iceland, Lichtenstein, Luxembourg, Netherlands, Spain, and Sweden, using its European specialized banking license.

    In a few clicks clients from these countries will be able to upgrade to Revolut Bank from within the app, it said.

    Deposits will be secured by the Lithuanian State company deposit and investment insurance, it added.

    Over the past few years, Revolut’s rapid level of growth has added pressure on Swiss banks to boost their digital services. Since its inception in 2015 the company has attracted more than 18 million customers globally, it says on its website.

  • UBS Digital Expert Exits for Fintech Role

    UBS Digital Expert Exits for Fintech Role

    The digital expert who jump-started UBS’ platform plans is leaving for a job at a Swiss financial start-up.

    Martha Boeckenfeld is exiting at UBS, where she has was brought in as head of digital platforms and marketplaces in Switzerland over two years ago, finews.com has learned. The 56-year-old German native will join the advisory board of Gentwo, a securitization fintech.

    A spokesman for the Swiss bank confirmed her exit, which comes several months after her job was quietly downgraded last September. Boeckenfeld’s team at UBS will report to Asia wealth co-head August Hatecke, effective immediately.

    Gentwo was founded by Philippe Naegeli and Patrick Loepfe four years ago. Its Assetrush platform seeks to connect financial innovators and investors both digitally as well as physically, through events.

    The Zurich-based start-up recently added Spiros Margaris to the board that Boeckenfeld is joining, alongside Beat Hodel and Marc Bernegger

  • Security Hot Spot: Bankers’ Phones

    Security Hot Spot: Bankers’ Phones

    Uncertainty over the use of private mobiles for work is rife as banks request access to employees’ phones and authorities clamp down on documentation lapses.

    It’s time to look at where the dangers lie in using our personal phones for work after recent events, including J.P.Morgan’s $200 million dollar fine for not documenting conversations conducted on private mobiles, Credit Suisse asking to access employees’ devices, and the Swiss army ‘s military-wide switch from Whatsapp to Swiss-made messenger service Threema.

    Yet, pinpointing the danger to a single area is impossible. The combination of hardware, operating system, and apps installed on our phones, determines how safe our personal devices are, Urs Kuederli, PwC Switzerland’s cybersecurity and privacy lead said. For someone who works in a bank the sheer act of installing Whatsapp for example on an unprotected phone can pose more than just a data breach, he says.

    Given that the messaging service goes through a user’s entire phonebook and uploads all contacts – potentially including client contact information – to a server located abroad, installing the chat app can represent a violation of the banking act and banking secrecy laws.

    The storage of data on U.S. servers, which U.S. authorities can access, was also the reason behind the Swiss Army’s recent decision to shift internal communication from Whatsapp to Swiss-based messenger service Threema, as Tagesanzeiger reported last week.

    Companies should ensure that employees can split functionalities and data used privately from those used for business purposes, by using device management systems, such as Microsoft Intune, MobileIron, or Blackberrywork, Kuederli says. These have so-called container solutions.

    While these do not provide a one hundred percent guarantee, they offer a good balance between security and usability, Kuederli adds.

    There is also the option of carrying around two devices, one strictly for work and one for private use. While this might not very convenient, it is more data-secure.

    It could also be a better solution for those Credit Suisse employees who find that giving their employer access to their mobile phones is an intrusion into their privacy, as we reported last month.

    However, most of the Credit Suisse staff don’t use an additional work phone but receive a monthly reimbursed sum to cover work calls on their personal mobile phones, the outlet wrote.

    Although the Swiss Financial Authority (Finma) prescribes that all communication related to securities trading or information with supervisory relevance must be recorded for two years, it leaves it up to the banks themselves to determine their own communication policies.

    The financial watchdog supervises that internal requirements are adhered to and if it finds that an individual has breached an employer’s policies, it can take action against the bank as well as against the individual.

    Extra caution is now required as Swiss companies revert back to remote working.

    Financial institutions have adapted their processes to the new way of working as well as improving their data security efforts since the first COVID-19 lockdown, yet «there are still lapses and the

  • Swissquote Buys Luxembourg Lender

    Swissquote Buys Luxembourg Lender

    The Swiss digital bank is buying a bank in Luxembourg, in a bid to tackle the wider European market.

    Gland, Switzerland-based Swissquote is buying Keytrade Bank in Luxembourg, it said in an emailed statement on Wednesday. Neither bank disclosed the financial details of the deal.

    Twenty-three-year-old Keytrade has 1.7 billion euros ($1.9 billion) in client assets. Swissquote will take over a majority of its employees through its European-based bank.

    The Swiss bank said Keytrade vaults it to the largest online trading bank in Luxembourg, underpinning its growth plans in Europe. With the acquisition of Keytrade Bank Luxembourg, we will strengthen our European expansion, CEO Mark Buerki said.

    Moreover, we will continue to develop our service offering to suit the needs of institutional as well as private clients in Luxembourg and the European Union.

    The deal is expected to close by mid-year, and Swissquote it would disclose further details when it reported financial results on March 17.

  • New Ticino Bank Launches

    New Ticino Bank Launches

    Banca Generali’s new Swiss unit appoints an experienced banker as CEO, another sign of the recovering prospects for Lugano’s financial hub.

    The recent appointment of Renato Santi as CEO of Bank BG Suisse is just the latest sign of a budding recovery in the region’s financial industry.

    According to official records, the Swiss unit of Italy’s Banca Generali was established last October in Lugano. It does not yet have a banking license, although it is hoping to receive one from the Swiss Financial Market Supervisory Authority (Finma) this year.

    Santi is an experienced banker who worked for more than 10 years at Banca della Svizzera Italiana (BSI) before it was taken over from EFG International, a Swiss private bank, in 2016.  His last job at BSI was head of the Ticino, Zurich, and Italian regions. After his stint at BSI, Santi joined the Swiss business of Danish-Chinese bank Saxo although he left them last December to take up his new role at the start of 2022.

    Generali first entered the Swiss market in 2019 with its now completed takeover of Valeur, a Lugano-based asset manager. The business was renamed BG Valeur under the operational management of Alida Carcano. According to sources, the asset manager will continue to exist alongside BG Suisse in future.

    Banca Generali’s exact strategy for BG Suisse will be disclosed at an investor day in February, a group spokesperson said, with plans afoot to start a business in the second half of the year.

    The launch of Bank BG Suisse is the third push into the Swiss market by a major Italian bank. The first was Intesa Sanpaolo’s takeover of a 69 percent stake in Geneva-based private bank Reyl.

    Reyl is slated to serve the Italian financial institution as to its hub for European private banking. Lugano will play a central role in that as it is close to the Italian border, a fact also helped by Intesa’s takeover of Bank Morval in 2017. Its business in Southern Switzerland will be merged with Reyl’s.

    The Ticino finance hub is gaining in importance after years of decline. Italy’s economic prosperity under Mario Draghi, who has served as the country’s prime minister since February 2021, is likely to accelerate that that trend.

    Reflecting that, The Milan Exchange gained 20 percent in 2021, with Intesa Sanpaolo shares up by 16 percent, Generali’s gaining 30 percent, and Unicredit’s rising a very significant 75 percent.

  • Hong Kong Sends Bankers Home

    Hong Kong Sends Bankers Home

    Tighter government COVID-19 restrictions from Saturday already prompted UBS and other banks to re-impose workplace limits.

    The Hong Kong government yesterday announced a raft of new COVID-19 restrictions yesterday following a number of untraceable Omnicron variant cases, a step that is already prompting UBS and other banks to ask bankers to resume working from home.

    The government says on its website that the enhanced restrictions will take effect from January 7 and last for 14 days. Group gatherings of more than four people will be prohibited and restaurants will have to close at 6pm.

    All leisure and sports facilities, gyms and bars will be fully closed. It has also suspended all flights from Australia, Canada, France, India, Pakistan, the Philippines, the UK, and the U.S.

    UBS is splitting its 2,500 workforces into groups, with one working from home and the other in the office in an alternate fashion, according to a report, citing an internal memo.

    Employees have also been asked to curtail movement in the office and sharply limit socialization outside their direct teams, the memo indicates. Other banks taking similar steps include HSBC, Bank of America, and Standard Chartered, the news outlet said.

    Others are expected to follow as the restrictions come into effect.

  • Bitcoin Suisse Taps Ex-UBS Banker as CEO

    Bitcoin Suisse Taps Ex-UBS Banker as CEO

    The Swiss crypto broker’s CEO is stepping down after four years. His replacement is an ex-UBS banker well-known for his technology expertise.

    Arthur Vayloyan is stepping down as CEO of Bitcoin Suisse at the end of March, the Zug-based crypto firm said in a statement on Friday. He will be replaced by Dirk Klee, effective April 1. Vayloyan will remain one of five board members of the firm.

    Like Vayloyan, Klee comes from traditional financial services: he was the operating chief of UBS’ flagship wealth unit for five years before in 2018 taking the top job at Barclays for wealth management and investments in the U.K.

    Bitcoin Suisse didn’t provide a specific reason for the CEO change. The news comes one week after co-founder Niklas Nikolajsen relinquished the chair job to Luzius Meisser.

    The nine-year-old firm is coming off a turbulent 2021: it was forced to retreat on a Swiss banking license, after being told by regulator Finma that it hadn’t done enough to root out money laundering. This led Bitcoin Suisse to strengthen its ranks several months later.

    It remains wildly profitable: Niklajsen said Bitcoin Suisse is on its way to nearly doubling last year’s net profit of 24.1 million Swiss francs ($26.1 million), in a social media post last month.

    Klee, a German native, has made a career of innovating traditional financial services: he ran a large part of Blackrock’s exchange-traded funds business in Europe before moving to UBS in 2013.

    There, he was responsible for a $1 billion technology project to unify UBS’ disparate wealth platforms. Most recently, he oversaw the rollout of a digital tool for Barclays’ affluent U.K. clients.

  • Zurich Sells Life Insurance Book in Italy

    Zurich Sells Life Insurance Book in Italy

    The Swiss insurer is disposing of a life insurance portfolio in Italy. The deal lowers credit risk and boost capital.

    Zurich Insurance is selling its life and pension business to Gamalife, a Lisbon-based insurer, it said in a statement on Monday. Neither party disclosed financial details of the transaction.

    The deal encompasses traditional and unit-linked policies and will see $9.5 billion in net reserves transferred to Gamalife. Zurich said this will lead to a result of roughly $1.2 billion of capital and add 11 percentage points to its solvency ratio.

    Zurich, which said the sale lowers its exposure to credit risk considerably, expects to benefit from a $200 million boost in liquidity as well.

  • Bitmex Announces CEO for Swiss Business

    Bitmex Announces CEO for Swiss Business

    After announcing plans to expand in Switzerland, the trading crypto exchange has now found someone to lead its Swiss business.

    Seychelles-based Bitmex is appointing Ivo Sauter as chief executive of Bitmex Link Switzerland, according to his Linkedin profile. Sauter joins the crypto trading exchange from Gazprombank where he worked as a chief digital, transformation, and strategy officer.

    Bitmex is a platform for crypto asset trading. Bitmex Link is the exchange’s digital trading asset service, which includes spot trading, brokerage, custody, information products and a so-called academy for digital asset and crypto trading training.

    The company announced its intention to launch a Swiss office last year, along with plans to apply for a Finma license.

  • UBS Accepts Verdict for French Subsidiary

    UBS Accepts Verdict for French Subsidiary

    UBS is accepting convictions against its French subsidiary while keeping its legal options open in a tax dispute with French authorities for the group.

    UBS will pay a 1.9 million euro ($2.1 million) fine to French authorities. Last week’s French court ruling against Switzerland’s largest bank entailed a guilty conviction over tax offenses and money laundering, a 3.75 million euro fine plus 800 million euros in damages, and a 1 billion euro corporate bail.

    While the banking group is appealing against these convictions, it has accepted the verdict against its French subsidiary UBS (France).

    In a media statement from December 13, UBS (France) was acquitted of money laundering, but convicted of unlawful client solicitation for which the bank will now pay a 1.9 million euro fine.

    The bank highlighted in Monday’s media release that it’s current approach allows it to analyze the situation and weigh its options in the «best interest of its stakeholders,» which means that the group could still withdraw its appeal.

  • UBS Faces Tough Decision After Ruling

    UBS Faces Tough Decision After Ruling

    A French court’s ruling over money laundering in France puts UBS in front of a fundamental decision.

    Sometimes it pays to argue. A ruling after the first hearing over the solicitation of wealthy French clients in February 2019, threatened the bank with a record fine of 4.5 billion euros ($5.1 billion) including damages. Yesterday (Monday) an appeals court in Paris reduced this sum to 1.8 billion euros.

    UBS has a few days to decide whether it will accept the ruling or take the case to a high-instance court. The fine, which was cut by 2.7 billion euros, could be a strong incentive for the bank to give in and pay. However, it would also mean the bank admitting to having committed a criminal offense – which could also have consequences in other jurisdictions.

    The sentence that UBS received confirms the verdict from 2019 of illegal client solicitation and money laundering aggravated by tax fraud.

    UBS’ former CEO Sergio Ermotti upheld an uncompromising attitude in previous proceedings. The current CEO Ralph Hamers, however, might have a different view.

    Until now, the bank has always insisted that it had done nothing wrong legally. It rejected the accusation that it deliberately recruited rich customers in order to hide their money from the French tax authorities.

    It also argued that under the 2003 Savings Tax Agreement between the EU and Switzerland, it was not possible to prosecute for money laundering retroactively. A position that was sometimes perceived as arrogant in France.

    UBS softened its tone during the appeal compared to the first trial. Criminal law specialist Hervé Temime took over from Paris-based star lawyer Jean Veil. But this did not change the outcome significantly.

    Management’s duty to its shareholders to avert damages. This is a strong argument for the bank to continue litigating, to avoid a criminal conviction at all costs. It also means that legal costs are likely to pile up.

    The UBS tax case in France involves events that occurred years ago. They were set in motion by statements by former employee Stéphanie Gibaud and her book. Gibaud worked in communications and marketing at UBS in France from 1999 to 2012. In 2014, she published a book titled The woman who really knew too much in reference to the alleged tax fraud practices of the bank.

    The penalty reduction can be seen as a triumph for UBS. Although the verdicts suggest otherwise. The bank also lost an employment law case against the whistleblower Gibaud. The bank withdrew a lawsuit against her and her publisher for defamation. At the European Court of Justice in Strasbourg, UBS was also unsuccessful with a lawsuit against the security deposit of 1.3 billion euros demanded by France.

    In Belgium, UBS was able to settle a tax dispute without admitting guilt. It was ordered to pay a 49 million euro fine and charges of money laundering and of operating a criminal organization were dropped.

  • Chubb Appoints Singapore Country President

    Chubb Appoints Singapore Country President

    The property and casualty insurer has appointed a seasoned industry executive to lead its Singapore business.

    Chubb has appointed Kevin Bogardus as country president in Singapore, replacing Scott Simpson, who will become president for Chubb’s operations in Hong Kong and Macau, according to an announcement on Thursday.

    Bogardus, who brings more than 25 years of experience in the insurance industry, joined Chubb in 2009 as the chief advisor to Huatai Insurance, where Chubb is the largest shareholder. He helped grow Chubb’s footprint in China and expanded its business into new product lines becoming the market leader in Life Sciences, Financial Lines and Chinese multinational programs.

    In his new role, Bogardus will have overall responsibility for the growth and financial results of the operations across all lines of business and manage all affinity partnerships and drive efforts to deepen and grow them. Currently, the country president for Chubb in China but will relocate to Singapore for the role, which reports to Edward Ler, Chubb’s executive vice president and head of Southeast Asia.

  • UBS Joins Hong Kong Covid Quarantine Payers

    UBS Joins Hong Kong Covid Quarantine Payers

    Swiss financial giant UBS is the latest bank to announce reimbursement plans for employees from Hong Kong’s strict 21-day quarantine for travelers.

    For full-time Hong Kong-based employees up to the executive director level, UBS will reimburse up to HK$2,000 ($256) per day to cover quarantine hotel expenses costs to «reunite with immediate family» outside of the city, according to an internal memo.

    The reimbursement can total up to HK$42,000 for a single trip only and is available until November 30 next year, barring an earlier relaxation of restrictions by the Hong Kong government.

    A spokesperson for the bank confirmed the continues of the memo.

    UBS and a number of other global financial institutions have offered financial support to withstand the effects of Hong Kong’s zero-Covid policy.

    At $5,384, UBS has taken a slight lead in single payout for quarantine costs, ahead of Morgan Stanley ($5,128), Goldman Sachs ($5,000), and J.P. Morgan ($5,000).

  • UBS Asset Management Names Sustainability Head

    UBS Asset Management Names Sustainability Head

    Swiss bank UBS is hiring a sustainable expert for its asset management arm. The experienced banker used to manage the investments of an Australian state.

    UBS asset management is appointing Lucy Thomas as head of sustainable investing, the bank said in an emailed statement.

    Thomas will lead sustainability and impact strategy and report to Barry Gill, head of investments for UBS asset management.

    In her previous role, Thomas was head of investment stewardship at TCorp, the financial markets’ partner of the New South Wales government in Australia. Thomas will move from Sydney to Zurich for the position.

    Thomas brings extensive experience working with clients and leading the integration of sustainability factors into the investment process globally, Gill said in the statement.

  • DLA Piper Bolsters Asia Capabilities

    DLA Piper Bolsters Asia Capabilities

    The global law firm is has made a senior energy partner hire in Hong Kong.

    DLA Piper has appointed Russell Wilkinson as a partner in its Finance, Projects, and Restructuring (FP&R) practice, based in Hong Kong, the firm announced on Thursday.

    Wilkinson joins the firm from Baker Botts in Hong Kong, where he has been a senior energy partner since 2006. He focuses his practice on the development, acquisition/divestment, and financing of energy businesses and infrastructure, and the commercialization of energy resources. He has extensive experience in upstream and midstream petroleum projects, power generation, and transmission projects.

    He is widely recognized as an authority in the energy, oil, and gas markets, with rare expertise in liquefied natural gas, making him one of only a handful of specialist energy practitioners in Asia. He regularly advises national oil companies, oil majors, regional energy players companies, and energy traders across the region.

    Wilkinson’s arrival closely follows that of capital markets partner George Wu, announced earlier this week. The firm has been growing its corporate practice in Hong Kong, with Kristi Swartz joining in November as a partner in its Intellectual Property and Technology (IPT) practice, and the addition of capital markets partner Arthur Tso in March 2021.

    Over the past couple of years, DLA Piper has also welcomed partners Philip Lee and David Kuo in Singapore, and Samata Masagee in Bangkok.