HSBC Private Banking has reached an agreement to refer parts of its Latin America portfolio, consisting of clients based primarily in Central America and the Andean Pact, to UBS Wealth Management Americas according to an internal memo seen by thewealthnet.
Peter Boyles, chief executive, HSBC global private banking, said: "This decision reflects a refocusing of our strategy on those Latin American markets where we have existing scale in our portfolio and where we have identified growth opportunities for our private banking business, in particular Argentina, Brazil, Chile and Mexico."
The bank's private banking Latin America strategy will continue to be led primarily by teams based in the Miami office, managed by George Crosby and reporting to Joe Abruzzo, head of GPB Americas. HSBC expects up to 40 members of staff to be offered roles at UBS, with the remaining team continuing to provide banking and investment management services in core markets within Latin America.
A source familiar with the business said HSBC's Miami office had around $5 billion in assets under management from Central American and Andean clients at the end of 2015.
Mr Boyle added: "This agreement completes the strategic repositioning of private banking's footprint to more closely align to the group's. We have a private banking business that is well placed to deliver on our strategy of serving the personal wealth needs of the owners and principals of HSBC's corporate clients, and to source our future growth from referrals from the other three global businesses."
UBS Wealth Management Americas could not be reached for a comment.