In a further sign that the HSBC securities services group in Asia is prepared to risk competing for fund servicing business in the region with its global custodian clients, HSBC announced today that it is to buy United Overseas Bank (UOB) of Singapore out of the two banks’ 50:50 shareholder services joint venture, Asia Fund Services Pte Ltd (AFS). HSBC is paying UOB S$4.5 million (US$2.6 million).
Upon completion, AFS will be 100 per cent held by HSBC Institutional Trust Services (BVI) Limited and renamed HSBC Securities Services (Transfer Agency) Pte Limited. The transaction is subject to regulatory and other approvals, but is expected to be completed by 30 November this year.
“We have great confidence in the shareholder services software that has been developed by Asia Fund Services,” says Nick Bryan, Head of HSBC Securities Services, Asia Pacific, in Hong Kong. “The improved functionality, flexibility and efficiency of the system allow HSBC to unify its shareholder services globally. Full ownership of Asia Fund Services will enable us to accelerate the transfer of clients to the enhanced platform in a seamless and efficient manner.”
AFS, which offers shareholder services in Singapore, was established in February 2004 as a joint venture between HSBC and UOB. Under the joint venture, the two companies shared the cost of developing a new share registry service and reporting system catering specifically to the needs of institutional fund services clients in Singapore.
HSBC says it will now roll out the system globally to all of its fund administration clients.
UOB will continue to use the services of AFS after it is transferred to full HSBC ownership.