Speaking to International Adviser about its acquisition of The Henley Group in Asia earlier this year, SJP managing director Ian Gascoigne said it was “no secret” the company had also surveyed opportunities in the UAE, Dubai in particular.
“We would certainly be looking [at Dubai] next but certain things need to be in place, and I don’t think that’s any secret. But things have to be right, perhaps by finding an existing business that will fit our values and what we are trying to do.”
Gascoigne added that a move into Dubai would not necessarily be made through an acquisition, as with Asia, but could be made “organically”.
“Dubai is a place where, once we have the licence in place, we could export a management team from SJP and build a new operation,” he said. “An organic model would quite easily work in Dubai.”
It is likely that, if SJP was to open an office in the UAE, it would do so under a Securities and Commodities Authority (SCA) licence. The SCA licenses advisory firms which sell investment funds to retail clients, as well as asset management companies and stockbrokers.
Moratorium
According to recent research, there are currently 17 advisory firms regulated by the SCA.
By far the largest regulator of intermediaries in the UAE is the Insurance Authority, with more than
140 firms under its watch.
However, it has had a moratorium on providing new licences in place since 2008 and has not given any clear indication of when this will be lifted, despite a regulatory overhaul due to be implemented next month.
SJP’s plans in the UAE could threaten the dominance of what has, until now, been arguably the largest advisory business operating in multiple jurisdictions, deVere Group. Specifically, opening in the UAE would be in direct competition with PIC – deVere’s UAE operation – as the two businesses run a similar model.
“Competition is good”
DeVere chief executive Nigel Green said of SJP’s plans: “Competition is good for any industry. It drives up standards and incentivises progress; it ensures the survival of the fittest. DeVere Group, like many other strong, robust organisations, has always faced competition and it is something on which we thrive and which fuels our commitment to success.”
