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The Australian Prudential Regulation Authority (APRA) has revoked BNP Paribas Securities Services’ authorised deposit-taking institution (ADI) licence under the Banking Act 1959.
According to APRA, this local action is at the request of the entity and is in line with a restructure of the BNP Paribas Group, it explained.
The French bank BNP Paribas will continue to remain an ADI in Australia, APRA confirmed, and it will be regulated by APRA in accordance with the Banking Act. It The serves corporate and institutional clients in both Australia and New Zealand and does not hold a mortgage book, it confirmed.
The moves followed the recent intragroup merger of BNP Paribas Securities Services SCA with its parent company, BNP Paribas SA, on 1 October.
The Securities Services business was previously provided via a distinct legal entity within the BNP Paribas group — BNP Paribas Securities Services SCA — which was fully owned by BNP Paribas SA, the organisation explained.
“On the merger date, this distinct legal entity ceased to exist and the Securities Services business is now provided via BNP Paribas SA,” BNP Group outlined.
“This merger underlines the strategic importance of Securities Services for BNP Paribas as a key part of its integrated banking model.
“With the aim of enhancing customer experience, BNP Paribas will provide clients with more flexible end-to-end offerings through simpler documentation and a broader and complementary range of products.”
BNP strategy remains unchanged with its clients
BNP Paribas Australia & New Zealand CEO Karine Delvallée told Mortgage Business: “Following an intragroup merger, Securities Services now operates under the same legal entity as that of its parent company, BNP Paribas SA."
"This will allow the Bank to offer more flexible end-to-end offerings to its clients.
Securities Services is a key pillar of growth for the bank’s corporate and institutional banking business. The Securities Services strategy remains unchanged and its clients will continue to be serviced by the same teams,” she explained.
Local appointments at BNP
In September, BNP Paribas Securities Services appointed Daniel Cheever as head of securities services for Australia and New Zealand.
In this role, Mr Cheever will continue to build on the success of the bank’s securities services business in the region and support its strong institutional client base with services to help them adapt to technology and regulatory change, the bank explained.
Mr Cheever is based in Sydney and reports to Franck Dubois, head of securities services Asia Pacific at BNP Paribas, and Karine Delvallée, chief executive of BNP Paribas Australia and New Zealand.
[Related: APRA outlines plans to ‘modernise’]