The acquisition of the private banking business of UBS Spain by Singular Bank could have an immediate consequence: the initial flight of about 2,100 million euros that financial intermediaries (independent advisors, agents, agencies and securities companies) have in the Swiss bank and that for Javier Marinhowever, are not priorities.
Singular alone manages more than 5,000 million, and has agreed to integrate other 14,000 million customers of wealth management from UBSto become the main independent private bank in Spain with nearly 20,000 million in assets under management.
Of the 14,000 million UBS, 15% (approximately 2.1 billion) corresponds to administration, management or custody agreements with external firms that, not having their own manager, resorted to the Swiss bank to package investment recommendations to their clients, according to various internal Singular sources. These financial intermediaries paid a ‘rental’ to UBS for its services, although the ‘income’ for the Swiss was rather “low and of little added value”, Many voices from the financial sector who are aware of their situation agree.
These intermediaries could call on banks more accustomed to acting as an umbrella for independent advisers and brokers, in the event of Andbank, Renta 4 Banco, Creand Wealth Management (the former Banco Alcalá) or even the wholesaler investment bank, owned by Banca March. These entities feel more comfortable with this type of collaborating figures and for them they are core.
Therefore, it could be said that Marín, CEO of Singular Bank, discounts staying 11,900 million or less, since there is a second derivative. Some teams of private bankers could also take the exit door towards other banks with great fortunes, attracted by the best salaries and bonuses and the largest glamor that presuppose in the banks coming from Switzerland, USA, Germany or France. As they are Credit Suisse, JPMorgan, Deutsche Bank or BNP Paribas
So that these seconds do not go away, Marín will have to resort to money from Warburg Pincus to offer to 60 private bankers -all staff, without their own agents- of which UBS in Spain has a succulent retention bonus. At the moment, the details of these incentive packages are not known. In total, the UBS workforce in Spain is made up of almost 225 employees.
A first measure of containment by Marín has been to establish a strategic alliance with the Swiss bank under the sales agreement to develop services in other related areas and abroad, such as products, investment solutions and services of the UBS Global Wealth Management, Asset Management and Investment Banking divisions.
In this way, if large clients want to operate with international accounts (in Switzerland, Luxembourg or any other place) or carry out corporate banking operations (M&A, bond issues or capital increases), Singular will be able to rely on UBS and thus curb their intentions to move to other banking groups.
In an internal communication sent to Singular clients, Marín himself writes that they will have access to products issued or managed by UBS, among which, “for example, are alternative investments, structured products or illiquid investments, that will complement the wide range of financial products and solutions already available at Singular Bank”.
“Complementing our analysis capacity and adding the strategy and analysis reports produced by the Swiss bank -CIO View- to the analysis resources of our investment team, to share a privileged vision of the economy and markets at a global level”, he adds.