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RBC Reportedly Considering Sale Of Asian Wealth Management Business

By George C. Miller, Esq. of Shustak Reynolds & Partners, P.C. posted on Wednesday, March 1, 2017.

George C. Miller, Esq.
619.696.9500 ex. 105
[email protected] 

The Royal Bank of Canada (RBC) is reportedly reviewing its Asian wealth management business and considering a sale of the division. This latest review follows RBC’s abrupt departure from the Latin American wealth management and private banking markets in the fall of 2015. The firm cited rising compliance costs and diminished profitability as reasons for that closure.

It remains to be seen whether RBC’s review of the Asian wealth management division will result in a sale and whether financial advisors who work in that sector will be impacted. The company’s official spokesperson declined to comment on what the firm called rumors or speculation. It is apparent, however, that the company is at least evaluating whether to continue in the Asian wealth management business. 

CNBC has reported that RBC’s revenue from all international wealth management activities in 2016 was $330 million, down from $480 million in 2015 and $542 million in 2014. These figures pale in comparison to the firm’s wealth management revenues for the U.S. and Canada, which collectively exceeded $4.8 billion in 2016. While experts view the Asian market as primed for growth, increased emphasis on detecting and reporting potential money laundering and other unlawful activity has increased both the risk and cost of doing business in Asia.

Shustak Reynolds & Partners P.C.’s San Diego and Southern California FINRA, SEC and financial services attorneys have extensive experience representing financial advisors, RIA firms, hedge funds and other financial professionals in a variety of securities matters, including FINRA arbitrations and FINRA and SEC examinations, investigations and enforcement actions. Contact us today for a confidential consultation.

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