Royal bank of Canada (RBC) is working to ensure a "smooth transition" of its Caribbean wealth management businesses after SMP Partners Group's (SMP) acquisition of the bank's regional wealth management division. Nicole Duke-Westfield, RBC's senior manager of corporate communications, told Guardian Business that the purchase by the Isle of Man-based firm would not impact RBC's regional banking operations.
"The Caribbean continues to be an important part of our RBC strategy. This announcement is limited to our wealth management Caribbean businesses and does not impact RBC Caribbean banking or any of our other RBC businesses in the region.
"In fact, we recently opened new private banking offices in The Bahamas and Cayman Islands. Together with SMP Partners Group, we are working to ensure a smooth transition for the businesses," stated Duke-Westfield.
The news comes nearly one year after RBC Wealth Management announced that it would shut down its wealth management division in the Caribbean. The transaction is expected to close in several months. The financial terms of the transaction have not been disclosed.
SMP Chairman Steve McGowan echoed RBC's assurances and stated that the purchase offers an "opportunity" as the firm expands its Caribbean presence.
"This acquisition will establish our presence in the Caribbean region and further extend our global network. Our group has established an international reputation as leaders in trust, fund and corporate administration and we look forward to continuing the delivery of the high standard of service provided by the RBC team.
"We will work closely with RBC to ensure a smooth transition of the businesses. The SMP Partners Group is known for investing time to build long-term relationships with clients and applying our collective expertise and experience to build and manage tailored solutions that fit precisely with the requirements of our clients," McGowan said.
"This agreement is an opportunity to grow the Caribbean trust, fund and corporate administration operations as part of the SMP Group, further enhancing the services and opportunities for clients and staff," added McGowan.
In a separate statement, RBC Wealth Management international head Stuart Rutledge said that RBC believed it had found a "good fit" for its employees and clients in the region through SMP while reaffirming the Caribbean's importance in RBC's ongoing retail, commercial, and dominion securities investment business.
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