JPMorgan to set up “significant” wealth management business in Luxembourg
JPMorgan has announced plans to establish a wealth management business in Luxembourg as part of a corporate restructuring.
The company will also merge its Luxembourg bank with its London-based bank into one legal entity – to be completed early next year, the US bank has announced.
It described the restructuring plan as “long-planned”.
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The move will allow JP Morgan to support clients “across the European Economic Area.”
It also hoped to enhance capabilities in its investment banking and custody and fund divisions.
Once the merger is completed assets and liabilities – including client accounts and legal agreements – will be transferred from London-based J.P. Morgan International Bank (JPMIB) to J.P Morgan Bank Luxembourg S.A (JPMBL) – with the London bank then being dissolved.
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A number of asset and wealth managers have chosen to expand into or move to Luxembourg in anticipation of Brexit.
JPMorgan’s shares dropped initially but rose half a per cent.