Appleby Advise Standard Chartered on Ground Breaking Restructuring of its Jersey Banking Operations
17 Sep, 2013
Standard Chartered’s two banking entities in Jersey consolidated yesterday, Monday 16 September 2013, to create a single efficient operating platform for its Jersey business.
The bank, which employs over 150 staff locally, was the first Jersey banking group to use a provision in Jersey’s banking legislation to seamlessly transfer all of the business of its locally incorporated subsidiary to the Jersey Branch of its parent company, Standard Chartered Bank. The Jersey Branch of Standard Chartered Bank becomes the sole operating entity in the Island.
Richard Ingle (pictured), Chief Executive Officer of Standard Chartered in Jersey explains: “The historic reasons for Standard Chartered to operate from two entities in Jersey no longer apply. In order to provide a more efficient operating platform we therefore decided to consolidate all of our activities in the Island into the existing Jersey Branch of Standard Chartered Bank. The use of a court approved scheme allowed us to transfer our business with minimal disruption for our clients who can continue to enjoy the bank’s broad range of offshore savings and investment products and our high level of dedication and service.”
Standard Chartered was advised locally by the Jersey office of Appleby. Wendy Benjamin, Partner and Appleby’s Corporate & Commercial Practice Group Head in Jersey commented: “Up until 2008 the options for effecting banking reorganisations in Jersey were limited. The revisions in Jersey’s banking law now allow Jersey banks a relatively quick and cost-effective method for business transfers. The Standard Chartered scheme was novel because it was the first time the legislation has been used for a transfer from a subsidiary to a branch not only of banking business but also investment business. As banks continue to assess capital, liquidity and operational efficiency against a backdrop of regulatory change, we anticipate further strategic reorganisations of banking groups, including offshore subsidiaries and branches.”
Richard Ingle continues, “The objective of the transfer was to reduce operational complexity and achieve a platform in Jersey that allows the Bank to operate as efficiently as possible for our clients whilst creating the capacity for our business to grow.”
Standard Chartered, which focuses on serving clients with links to Asia, Africa and the Middle East, celebrates its 35th anniversary in Jersey this year and this restructure positions the Bank for continued progress in these exciting growth markets.