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RBC Looks To Expand Capabilities In Brunei, Singapore
Royal Bank of Canada has applied for an investment management licence in Brunei and a trust licence in Singapore, as it sees prospects in the wealth management sector.
While the bank has operated in Brunei in an offshore capacity since 2002, it is looking to develop onshore capabilities. It views the Sultanate as a potential financial hub for southeast Asia, ideally located to attract investors from eastern Malaysia, southern Philippines and parts of Indonesia.
"There is a long-term strategy that involves Brunei as we are focused on institutional businesses and that's our strategy. With that said, we continue to focus on trying to grow our share of the market in Brunei by being a good long-term partner, not only through servicing our clients well, but investing in Brunei, acquiring licences, hiring people and training people," Michael Lagopoulos, president and chief executive of RBC's international wealth management division, told the Brunei Times.
Executives from the bank have met with Brunei’s minister of finance to discuss tax, broader cooperation and the exchange of agreements between Canada and Brunei. It is particularly important to resolve the issue of double taxation, Doug Gunton, RBC's head of Canadian international centres and Asia, reportedly said.
The bank has also applied for a trust license in Singapore to take advantage of the opportunities offered by western firms' expansion there.
"We are looking to open a trust business in Singapore and our license application is in with the monetary authority. There are three reasons why. We see it as an emerging jurisdiction (we already have a trust company in Hong Kong) and want to capitalise on the potential for growth. We see western firms setting up in Singapore to take advantage of the growth and so our pensions plan and employee benefit trust business has an opportunity to expand. The third opportunity we see is western ‘planners’, who are looking for an onshore/offshore planning centre such as Singapore," said Paul Patterson, head of RBC wealth management in the British Isles.