CACEIS, the new securities services joint venture between two major French banks, is now operational. It will be one of the world’s top 10 global custodians with total assets under custody of e1.435trn in the institutional segment alone.
The new operation, jointly owned by Crédit Agricole and Groupe Caisse d’Epargne, was unveiled by the bank’s top management at an event in Paris in September.
Caisse Nationale’s investment banking chief Anthony Orsatelli has been named chairman for a two-year term while Crédit Agricole’s asset management head Thierry Coste becomes vice-chairman.
The supervisory board is made up of equal numbers of representatives of both shareholders “reflecting the equality in their partnership”.
Members of the three-strong management board are appointed for five-year terms. Chairman François Marion will focus on audit, compliance, risk, finance and human resources.
Chief executive Michel Bois’ focus will be on subsidiaries based in France, operations and information systems.
And management board member Guillaume Fromont will handle units outside France, sales and business development.
“The organisation of the CACEIS Group is currently in progress with the recent appointment of its senior management team, the implementation of the company’s overall supervisory structure, the launch of the brand and adoption of a single commercial approach,” CACEIS says.
The venture reflects both groups’ determination to combine the securities services businesses of their respective subsidiaries, Crédit Agricole Investor Services and IXIS Investor Services.Their stated aim is to create a “major European institution offering financial services to institutional investors and major corporations”.
The owners say CACEIS will benefit from the financial strength of its shareholders. It will have over e300m of tier 1 shareholder equity and is expected to generate net banking income of about e500m in 2005.
It will have and gross operating income in excess of e100m and some 2,400 staff.
“From the very outset, CACEIS ranks as a major player in the European market in its core business lines: depositary and custodian banking services, fund administration, and corporate trust services,” they say.
In addition to being a top 10 European player, it is the number one depository bank in France with a 35% market share and the largest bank in terms of assets held with Euroclear France – with a 35% market share. It will also be the largest administrator of collective investment vehicles in France, again with a 35% market stake.
CACEIS will be the fourth largest fund administrator in Luxembourg and one of Europe’s leading fund administrators, with e681bn in assets and more than 5,000 portfolios.
In 2006, the ongoing integration of the the two organisations will continue with the merger of the French subsidiaries specialising in the same business activities. It is envisaged that the group’s France-based personnel will be brought together at two locations in Paris.
But already the global supervisory structure of CACEIS has been implemented with managers appointed for such areas as finance, information systems, human resources, risk management, compliance and depositary control.