UOB Kay Hian is suing for DBS Vickers, Banking & Finance


Fri, Jun 21, 2019 – 5:50 AM


UOB Kay Hian, Singapore's largest securities broker, has emerged as a major competitor to the 150 remisiers and representatives of retail stock trading in DBS Vickers, the brokerage arm of DBS Bank, which is linked to the Singapore government.

Sources told The Business Times (BT) that UOB representatives Kay Hian and DBS Bank met and negotiations are under way.

The offer is for the transfer of the remisiers and the commercial representatives as a group – a move they deem more efficient than stealing individuals one by one.

DBS held another general meeting on Wednesday, after meeting with UHB Kay Hian, to update and mobilize remisiers and brokers, and to hear their comments and concerns.

The potential sale of the DBS Vickers remnant base is the latest turnaround in an episode involving DBS Vickers retail brokers and dealers.

Unlike brokers, remisiers are not full-time employees. They do not receive a basic salary, but receive a larger share of the commissions division.

DBS Bank, the largest Southeast Asian bank in terms of market value, has sought to reform its retail stock brokerage operations and explore alternative models for DBS Vickers in an attempt to provide customers with more value-added bids.

The bank had already ruled out rumors that it planned to close the retail stock brokerage. The company reported late February that it would be transferring to the bank by the end of the year retail stock trading under DBS Vickers.

All DBS Vickers employees were given new roles at the bank. However, not all remisiers – being autonomous trade representatives – wanted to move to the bank, which did their best to offer jobs.

Singapore's brokerage industry has changed drastically over the years, with deregulation, cutbacks in commissions and the advent of online trading among disruptions.

The consolidation of the brokerage industry in Singapore began in 2000, when UOB Securities merged with Kay Hian Holdings, creating a combined entity that is the second largest brokerage in the city-state.

The merger preceded government measures to reduce entry barriers in Singapore's securities industry. The following year, DBS Securities and Vickers Ballas became DBS Vickers for $ 444 million.

Brokerage commissions were fully liberalized in October 2000. Earlier, commissions – the main source of revenue for most bond houses – were fixed by the stock exchange and traded only for amounts above S $ 1 million or S $ 1.5 million, subject to a minimum of approximately 0.285 percent or 0.3 percent. They could reach a percent, compared to the current scarce rates.

Today, the market is dominated mainly by banking institutions such as DBS Vickers, Maybank Kim Eng, RHB Securities, OCBC Securities, Fraser Securities and Kay Hian UOB, as well as independent brokers such as Philips Securities and Lim & Tan .

The redesign of DBS Vickers is part of an integration strategy the bank started six years ago in 2013. DBS was the first to put banking and brokerage under one roof, strengthening its wealth proposal.

At that time, he transferred a number of his DBS Vickers employees to the bank in an effort to meet the demand for a more holistic wealth proposal.

The initiative was launched in phases, starting with clients DBS Treasures Private Client and DBS Private Bank in mid-2013; the same unified service has been extended to all other DBS customers by the end of 2013.

The launch meant that DBS customers can use a team of stock specialists within the bank to advise on stock-related investment options.

With an Internet banking account, customers can also negotiate online, having access to more than 85 iBanking services, such as wire transfers and electronic payment of shares.

With more options, customers do not need to maintain separate banking and brokerage relationships.


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