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BNP Paribas Australia aligns with global model
The launch of BNP Paribas Securities Services as a foreign deposit-taking institution (FDI) in February represents an alignment with the organisation's global structure, according to managing director, Australia and New Zealand, Pierre Jond.
The status of BNP Paribas as an FDI in Australia will allow the company to "deploy locally a broad suite of banking products such as currency hedging, dealing services and derivatives clearing," according to a BNP Paribas statement.
Jond said he expected to see a "healthy demand" for the FDI-related services as BNP Paribas's clients continually sought to manage risk, diversify and operate more efficiently.
"Agency dealing services, for example, are useful for large superannuation funds that want to establish in-house fund management capabilities. It allows them to reduce execution costs while maintaining their existing broker panel, since the service is broker neutral," said Jond.
He said BNP Paribas Australia and New Zealand is already in discussions with a number of "potential and existing" clients regarding the newly offered services.
"We are keen to build our business in Australia and view having a comprehensive product suite as key to meeting the needs of all clients," said Jond.
"When you consider the size of the superannuation market and some of the larger funds, and that the market will continue to grow as the superannuation guarantee rises — it is no surprise that funds will seek to invest more abroad," he added.
In the immediate term, BNP Paribas is devoting much of its time to helping its clients with the Stronger Super reforms, said Jond.
"We're in discussions with clients in relation to the management of data, and enabling information flow between the client, their administrator, the custodian, fund managers and other third parties. We see this as a way for us to add value, differentiate ourselves and utilise our middle-office expertise," Jond said.
BNP Paribas has also announced the appointment of Nicolas Faust as head of market and financial services products.
Faust, who managed the project to establish BNP Paribas as a bank in Australia, will report to BNP Paribas head of treasury, agency securities lending and foreign exchange for Asia Pacific.
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