In a statement, Kleinwort said it had decided to sell the retail packaged trusts and pensions plans in acquired from Close in March last year as it is not “an area of focus for us”. It had been widely anticipated within the market that Kleinwort would sell the assets.
Under the deal, Kleinwort will continue to provide some investment services to products run by Overseas Trust and Pension which offers a range of retirement, pension and trust products for international markets along with a range of country specific products for jurisdictions such as South Africa, Spain and the Middle East.
“The high net worth and corporate business lines acquired from Close Brothers in 2011 were a strong strategic fit with Kleinwort Benson and have become core parts of our business,” said Clive Wright, managing director of Private Wealth Management, Offshore at Kleinwort Benson.
“However, the retail packaged trusts and pension plans, while recognised for their innovation and strong position in the market, are not an area of focus for us and for that reason, we have taken time to find a partner which is well-placed to continue to grow these business lines and deliver efficient service to clients.”
David Higgins of Overseas Trust and Pension meanwhile, said the purchase will be used as a platform from which the company can build.
“We are looking to build on the existing customer and product base which the purchase of the KB assets brings and plan to launch new products into the market including a full suite of QROPS in the coming months,” said Higgins.
“However, this business is not reliant on QROPS – I think we have seen how dangerous it is to be too reliant on one product – and so we will also be looking at building on the other trust and retirement products already on offer from KB.”
Higgins also revealed that Rex Cowley, former director of products and marketing at Close who left just after it was bought by Kleinwort, would be joining the company, along with a number of other Kleinwort staff.
