BNP Paribas and Allfunds announced that they have entered into an agreement to create a fund and wealthtech platform and develop next-generation fund distribution services.
BNP Paribas intends to use Allfunds as preferred access to the fund market, exploring together opportunities to enhance services to fund providers and financial institutions. The bank will also transfer its Banca Corrispondente local paying agency activities in Italy, as well as some Italian transfer agency services, to Allfunds, where they will complement its existing range of local fund distribution services.
In addition, BNP Paribas will entrust Allfunds with the management of distribution contracts of third-party investment funds for several BNP Paribas Group entities in its retail, wealth management, insurance and asset management businesses.
Patrick Colle, CEO at BNP Paribas Securities Services, said in a statement that the agreement will also “accelerate the development of next-generation fund distribution services and data analytics.”
The transaction, which will see BNP Paribas Securities Services and BNP Paribas Asset Management receive together a strategic stake of 22.5% in Allfunds, is subject to regulatory approvals and required consultations. It is expected to close before the end of 2020.
In September, Credit Suisse announced the closing of the transfer of its third party investment fund platform InvestLab to Allfunds, which created a global fund distribution platform with combined assets under administration (AuA) of more than CHF 570 billion [$579 bn], according to a Credit Suisse statement.