Standard Chartered will acquire RBC Investor Services Trust in Hong Kong as part of broader plans to grow its retirement business in the city.
Standard Chartered has agreed to buy RBC Investor Services Trust Hong Kong – an indirect subsidiary of Royal Bank of Canada – according to a statement, without disclosing further details about the deal including the acquisition price.
«This acquisition is a natural extension for us,» said Standard Chartered’s regional head of financing and securities services for Greater China and North Asia Simon Kellaway.
«We believe that we can grow that business quite dramatically over the coming years as there’s more focus on saving for retirement.»
MPF
The acquisition will enable Standard Chartered to be one of the 13 trustees for Hong Kong’s mandatory provident fund (MPF).
Hong Kong’s MPF was established in 2000 as a compulsory retirement scheme and today houses $1.2 trillion ($154 billion) belonging to around 4.5 million members in the city.
Reentry to Retirement Business
Previously, Standard Chartered also had its own MPF business before selling it as part of a larger deal to Manulife in 2015.
It subsequently formed a 15-year MPF distribution partnership with RBC Investor Services Trust.
