Merrill to open wealth units in Moscow, Istanbul

Wealth Bulletin

24 June 2008 - By Jason Corcoran

Merrill Lynch wealth management unit is expanding its business by opening new offices in Russia and Turkey and expanding teams in Greece and other regions of emerging Europe.

Jean-Marie Deluermoz, director of emerging European markets, EMEA Wealth Management, at Merrill Lynch, said the group had given him a substantial budget to expand the business over the next five years.

Speaking in Moscow at the launch of the Capgemini Merrill Lynch 2008 Wealth Report, he told Wealth Bulletin: "We have a big recruitment budget for the region. Emerging Europe - Russia, the former Soviet Union states, Turkey and Greece - are attracting strong growth rates for wealth management."

A Moscow office to serve Russian clients offshore is expected to open in the third quarter, as is a new office in Istanbul. Merrill is also recruiting new teams for Greece and other countries, which were not disclosed.

Deluermoz, who set up Credit Suisse's representative office in Moscow in 2003, will take charge of the Russian operation from London.

He said Russian high net worth clients were starting to look beyond cash deposits and real estate investment to more sophisticated products such as hedge funds.

Deluermoz said the bank had decided not to go down the route of offering onshore banking in Moscow like its rivals UBS and Credit Suisse.

"It takes one year to get authorisation from the market regulator and another two years for a retail banking license, which you need to offer wealth management services," he added.