IN BRIEF
1MDB
Leissner hit with lifetime ban in HKHong Kong’s securities regulator has issued
a lifetime ban to Tim Leissner, the former
Goldman Sachs banker who has been embroiled
in a money-laundering scandal surrounding
Malaysian state investment firm 1MDB.
The Securities and Futures Commission said
in a statement last Wednesday that Leissner,
who has pleaded guilty to charges in the US
related to 1MDB and is awaiting sentencing, had
demonstrated “a serious lack of honesty and
integrity”.
Leissner has received similar bans elsewhere.
In 2017, he was banned from re-entering the
industry in Singapore for 10 years, later increased
to a lifetime ban. Earlier this year, he was barred
for life from the banking industry by the US
Federal Reserve.
Leissner was responsible for managing the
relationship with 1MDB when the fund hired
Goldman to arrange three bond issues in
2012–2013.
The US Department of Justice estimates
US$4.5bn was misappropriated from 1MDB
between 2009 and 2014, including some of the
funds that Goldman helped raise.
The bank has denied any wrongdoing and
said certain members of the former Malaysian
government and 1MDB lied to it about how the
bond proceeds would be used.BNP Paribas
Research tie-up with MorningstarBNP PARIBAS will source the bulk of its Asia Pacific
equity research from independent research
provider MORNINGSTAR.
The French bank said the agreement includes
coverage for about 150 stocks from six industry
sectors in China, Hong Kong, Singapore, South
Korea and Taiwan.
Most of BNP Paribas’ in-house equities research
team, mainly in Hong Kong and Singapore, will
depart as a result of the pact but the bank will
retain roughly half a dozen senior industry sector
specialists, a person familiar with the matter said.
A BNP Paribas spokesman in Hong Kong declined
to comment on possible headcount changes.The bank’s total stock coverage in the region as
a result of the partnership will be around 330
companies including those listed in India, where
it will continue to undertake equity research in-
house, the bank said.
Asset managers have become less willing to pay
as much for stock-picking research following
the introduction of MiFID II. It has forced some
investment banks to scale back or outsource
their coverage of companies.
“With recent changes in regulatory and market
conditions, banks have sought to adapt their
sell-side, cash equity research models, while
continuing to meet clients’ needs,” the bank
said in the statement.
In December 2016, Societe Generale announced
a tie-up with Singapore-based independent
research provider Smartkarma.National Australia Bank
Securities business in Japan plannedNATIONAL AUSTRALIA BANK will start a new
business in Japan to connect Japanese firms
and institutional investors with corporates in
Australia and New Zealand.
According to its press release, the Australian
bank’s securities unit was given a licence from
Japan’s Financial Services Agency on June 28,
which allows it to trade bonds, repurchase
agreements, rate and currency swaps, and
currencies. It will initially focus on the repo
business to help Japanese clients with their
Australian dollar funding.
It also plans to expand its business in the future
to include bond distribution in Australian or New
Zealand dollars as well as in yen to Japanese
banks and life insurers.
The unit, named NAB Japan Securities, has about
10 front staff and will be led by Janari Tonoike, who
spent 33 years at JP Morgan in foreign bond sales.
She joined the Australian lender in January 2019.
It is applying for membership of the Japan
Securities Dealers Association with the aim of
starting the new business in late August to early
September.
Similarly, Australia & New Zealand Banking Group
was granted a securities licence in May 2018
and registered its membership with the JSDA in
August.Investec
Green light for Australia branchINVESTEC has been granted approval by
Australia’s banking regulator to open a branch
office, joining a growing list of international
banks looking to expand Down Under.
The Australian Prudential Regulation Authority
has authorised the bank to operate as a foreign
authorised deposit-taking institution, according
to a statement on its website.
Investec has been operating in Australia for
close to two decades through a non-branch
structure. The upgrading of its status to branch
office will allow it to provide a wider array of
services and deploy its balance sheet.
Foreign banks are increasing their presence in
Australia once more as they bet on resources
and infrastructure investment gathering pace
and as regulators push to promote competition
in the sector, hitherto dominated by the Big
Four.
In May, Societe Generale reopened its branch
office in the country six years after it gave up its
licence. Barclays has also undertaken a similar
volte-face recently, while ABN AMRO opened a
branch office in March.Asian Development Bank
Singapore office plannedThe ASIAN DEVELOPMENT BANK has announced
plans to open an office in Singapore to support
the expansion of its private sector operations.
The multilateral development bank has
faced difficulties in the past recruiting staff to
support its private sector operations, being
headquartered in Manila.
Singapore’s status as a major financial services
and infrastructure financing hub has long
prompted speculation that the ADB would open
an office there.
The World Bank and its private sector
financing arm the International Finance
Corporation have operated in Singapore for
many years.
The ADB’s new office is expected to open in the
second half of the year and will comprise 12
staff including personnel from its private sector
operations department and office of public–
private partnership, the development bank said
in a statement.People
&Markets
For information on how you can use favourable IFR Asia articles to reinforce your
sales message, for more information email: [email protected]MAKE THE MOST OF YOUR SUCCESS STORIES