Citi Australia today announced it has finalized a client transfer agreement with Royal Bank of Canada's (RBC's) custody business.
The announcement follows Citi and RBC signing a memorandum of understanding in November 2019, with the intent to facilitate an orderly transfer of the RBC client base to Citi over a 12 – 24 month period.
Citi Australia Head of Securities Services Martin Carpenter expects the majority of clients to transition to Citi and benefit from the bank's industry-leading platforms, proprietary custody network and excellent client servicing.
"Citi provides clients with in-depth local market expertise, advanced processing technologies and value-added services, like data management, in-house unit registry and ETF servicing," Carpenter said.
"In addition to working with new clients, we look forward to welcoming a large number of new employees to Citi, and the added operational scale will be of great benefit to our new and existing clients."
As a result of this transaction, Citi expects to significantly grow its market share and cement its position as a leading Custodian in the Australian market.
This transaction will also enable Citi Securities Services to build out its Sydney footprint, while also bolstering its Kuala Lumpur regional operations site, with a number of RBC's Kuala Lumpur based employees expected to join Citi. This adds to a strong existing presence in Melbourne.
Citi's Regional Head of Custody and Fund Services, Julie Kerr, said, "This transaction reflects Citi's ongoing investment and commitment to the Securities Services business both globally and locally. Australia is a targeted growth markets for Citi's Custody and Fund Services business."
Andrew Allen, RBC General Manager, stated, "We are proud of the business we have established in Australia; however, after careful consideration, we have concluded that the complex and dynamic nature of the market in Australia meant it was difficult for us to grow the business to the size and scale required to deliver meaningful value for our shareholders and clients.
We consider that it is in the long-term interest of our clients and employees to seek a transfer of our business to an organization with a client focus and strong offering in the market."
Citi, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management.
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