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Lombard Odier hands US wealth management to Vontobel

Lombard Odier headquarters
The Geneva-headquartered Lombard Odier has exited direct US wealth management activities. Keystone

Swiss private bank Lombard Odier has sold its wealth management business in the United States to rival Vontobel for an undisclosed sum. Both banks have experienced distinctly differing fortunes in the US market following a tax evasion crackdown by the Department of Justice (DoJ).

In 2015, Lombard Odier was fined nearly $100 millionExternal link (CHF100 million) after admitting that it had helped US clients to evade taxes. The Swiss bank was one of many to incur financial penalties during DoJ proceedings that signaled the end of Swiss banking secrecy.

Vontobel, on the other hand, was able to prove that it had not committed any offences in the US. Last year, Vontobel stated that it would expand its US business as other Swiss banks exited the market.

On Friday, Vontobel announced that it is taking over Lombard Odier’s US wealth management and its Canada-based brokerage units. Each business currently manages around $600 million of client assets, bringing the total to $1.2 billion.

The two banks have also entered into a cooperative agreement for Lombard Odier to recommend Vontobel to future clients who want wealth management services in the US.

“North America is one of our focus markets in which we intend to achieve above-average growth. With the acquisition of Lombard Odier’s discretionary and advisory wealth management business with US-based clients, we are supporting our organic growth in this region,” stated the head of Vontobel Wealth Management Georg Schubiger.

The dealExternal link is expected to be completed in the first half of 2019.

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