BSI Ltd

BSI Ltd
Company type	Aktiengesellschaft
Industry	Financial services
Founded	1873; 151 years ago
Headquarters	Via Magatti 2; Lugano, Switzerland
Key people	Joachim H. Straehle (Chairman); Thomas A. Mueller (CEO)
Products	private banking, asset management
AUM	CHF 84.3 billion (2015)
Website	www.bsibank.com

BSI had been the oldest bank in the Swiss canton of Ticino until its integration into EFG Bank and the following renaming into EFG, which took place in 2017.^[2] Founded in 1873 in Lugano as the Banca della Svizzera Italiana, BSI was an institution that specialises in asset management and related services for private and institutional clients. In 1998, the bank became part of the Italian Generali group, one of the world's biggest insurance companies. In July 2014, Generali sold BSI to BTG Pactual for US$1.7 billion,^[3] a deal that CEO of the bank, André Esteves stated would make BTG Pactual a “global player in the asset management arena.”^[4]^[5]

In February 2016 EFG International (SIX:EFGN), the global private banking group based in Zurich, announced the acquisition of the Lugano-based private bank, according to an agreement signed on 21 February 2016 with BSI's sole shareholder BTG Pactual. The transaction was finalized on November 1, 2016. Following the closing, BSI's activities have been integrated into EFG, market by market, in Singapore, Hong Kong, Bahamas, Switzerland and Luxembourg. The integration of Monaco's activities is expected to take place by the end of the second quarter 2017. With the integration of the Swiss business, which took place at April 2017, the rollout of the renewed EFG brand has started in all locations where the legal integration of BSI has been completed and those businesses will operate solely under the EFG name.

History

In 1873 BSI opened its main office on Piazza della Riforma in Lugano. The next year, the bank opened its first branch, this in Locarno. Branches in Bellinzona (1879) and Chiasso (1906) followed. In 1880 BSI relocated its headquarters to the historic Palazzo dei Marchesi Riva, which dates back to 1747, where the headquarters of the Bank are located to this day.

1881: BSI is the only bank in Ticino authorised to issue banknotes until 1907
1935: BSI opens a branch office in Zurich
1969: The start of international expansion
1973: One hundredth anniversary of BSI. BSI opens the St.Moritz branch
1975: BSI extends its reach to the French-speaking part of Switzerland.
1976: BSI opens its first representation in South America, in Caracas, Venezuela.
1981: Opening of the Hong Kong office.
1988: BSI extends its activities to the Principality of Monaco.
1998: Assicurazioni Generali, Trieste, becomes the sole shareholder
2000: As of 1 January, Banca della Svizzera Italiana is officially renamed BSI SA. In November, it opened new offices in Lausanne.
2005: Opens BSI Bank Ltd in Singapore
2005: September - The new BSI building opens at Via Canova 6, Lugano.
2006: BSI acquires Banca Unione di Credito.
2008: BSI acquires Banca del Gottardo and opens a representative office in Bahrain
2011: BSI expands in Asia and obtains a banking license to open a branch in Hong Kong
2013: BSI expands into Italy and obtains a banking licence to open the Italian branch of BSI Europe in Milan.
2014: BSI opens a branch in Panama
2015:
- After the launch of the branch in Milan, BSI opens a second Italian branch in Como
- On 14 July 2014, the Brazilian group BTG Pactual purchased BSI, subject to approval by the Swiss Financial Market Supervisory Authority (FINMA).
- From 15 September BSI is a subsidiary of BTG Pactual.
2016: In February EFG International (SIX:EFGN), the global private banking group based in Zurich, announced that it is to acquire BSI, according to an agreement signed on 21 February 2016 with BSI's sole shareholder BTG Pactual. The transaction was finalized on 1 November.
2016: In May the Monetary Authority of Singapore (MAS) announced that it had served BSI Bank (Singapore) Limited notice of intention to withdraw its status as a merchant bank in Singapore for serious breaches of anti-money laundering requirements, poor management oversight of the bank's operations, and gross misconduct by some of the bank's staff.^[6]
November 2016 - BSI Singapore is fully integrated into EFG under an accelerated asset deal
March 2017 - BSI Hong Kong is fully integrated into EFG
April 2017 - BSI Switzerland integration is completed. The roll-out of the new EFG brand beings in locations where the legal integration of BSI is completed
May 2017: BSI's entity in Luxembourg has been migrated to EFG Bank in Luxembourg

Product and Services

Private banking

Management mandate
Personalised mandate
Advisory services
Fund-based accumulation plans
BSI investment funds
Selection of third-party funds
Alternative investments
Structured products
Securities trading and currencies
Custodian services

Wealth management

Financial Planning
Corporate Finance
Lending Activities
BSI Art Advisory

Initiatives and Events

The dedication demonstrated by BSI to new ideas has been put into practice by promoting research, foundations, conferences, personal and collective exhibitions, publications, expositions of art and exclusive collections, prestigious concerts and a number of other endeavours. BSI is more than a patron - it vigorously promotes communication in these areas, organizing and taking part in events. The bank has always maintained its commitment to art, music and culture, with an active and constant presence at high-profile performances and exhibitions.

BSI Art Foundation

The BSI Art Foundation promotes the arts and culture in all of their forms. It organises events, exhibitions and displays in collaboration with other institutions, associations of individual artists and worldclass national museums. It publishes brochures, books and catalogues about art and artistic endeavours. The Foundation grants scholarships to talented young artists. For established artists, it sets up funds and contributes to developing the artists' potential.

BSI Gamma Foundation

Established on the 125th anniversary of BSI, the BSI Gamma Foundation promotes research in the area of asset management and cooperation between the world of research and practical applications, assigns research mandates to people or institutions with recognized experience in the sector, organises conferences and publishes the research results.

Centenario Foundation

The Centenario Foundation began in 1973 on the occasion of BSI's first one hundred years. Its scope is to bestow monetary recognition to persons or institutions which have furthered the development of Italian-Swiss relations, contributed to the betterment of understanding between the Swiss and Italian people or to the expansion of the common cultural heritage.

BSI Architectural Foundation

The BSI Architectural Foundation promotes understanding, education and research within the field of architecture, in particular by presenting a biennial architectural award, the BSI Architectural Award, the purpose of which is to recognize, and bring to public and media attention, architects who have made an important contribution to contemporary architecture and who have shown particular sensitivity to the landscape and environment.

Controversy

In 2015, BSI was one of the first banks that paid a penalty of US$ 211mio to the US government under a non-prosecution agreement for over 3500 declared and undeclared accounts of US Citizens that were opened and operational within BSI Bank. ^[7]

In 2016, Financial Times obtained numerous files from BSI that confirmed that an insider warned the Financial supervisory bodies that the bankers in its UK offices were offering services that could facilitate tax evasion and money laundering.^[8] As confirmed by the same article "the regulators deemed that the bank had done nothing wrong".

In 2017, Regulators in Europe and Asia investigated and punished BSI for its involvement in 1Malaysia Development Berhad scandal. Singapore regulator ordered the branch in Singapore to close down its operation, whilst Swiss regulator launched a criminal probe against some of the BSI's bankers in Singapore.^[9]

References

^ "Annual Report 2015" (PDF). BSI. Retrieved 15 June 2015.
^ "EFG International announces completion of legal integration of BSI's Swiss business and launches its renewed brand - EFG International". EFG. Retrieved 2019-01-06.
^ "Generali Sells Swiss Private Bank to BTG Pactual for $1.7 Billion". The New York Times. Retrieved 4 December 2014.
^ Bray, Chad; Dan Horch (14 July 2014). "Generali Sells Swiss Private Bank to BTG Pactual for $1.7 Billion". The New York Times. Retrieved 12 January 2015. In a conference call held to discuss the acquisition, BTG Pactual's chief executive, André Esteves, said that it was part of a plan to be a "global player in the asset management arena." The $200 billion in combined assets under management as a result of the deal was "a critical mass to continue to grow globally," he said.
^ Rutishauser, Arthur. "Die neuen Herren der BSI und ihre Vergangenheit" (in German). Sonntagszeitung. Archived from the original on 2015-01-22. Retrieved 10 January 2015. Die Erleichterung war gross, als im Juni bekannt wurde, dass die Banca della Svizzera Italiana (BSI), die Vermögen in der Höhe von 91 Milliarden Franken verwaltet, einen neuen Besitzer hat. Er heisst BTG Pactual, kommt aus Brasilien und hat mit André Esteves einen höchst erfolgreichen Chef, der einst UBS-Angestellter war.
^ "MAS directs BSI Bank to shut down in Singapore". Archived from the original on 2016-07-29. Retrieved 2016-07-22.
^ "BSI becomes first Swiss bank to settle under U.S. tax programme". Reuters. 15 March 2015. Retrieved 2 August 2022.
^ Burgis, Tom (11 May 2016). "Dark money: London's dirty secret. An insider at a Swiss bank warned Britain's financial watchdogs that bankers in its UK office were offering services that could facilitate tax evasion and money laundering. Did the regulators turn a blind eye? The FT investigates the City's role as a global hub for illicit finance". Financial Times. Retrieved 24 August 2021.
^ "Regulators accuse Swiss bank BSI over 1MDB scandal". Financial Times. 24 May 2016. Retrieved 2 August 2022.

External links

Official website

46°00′15″N 8°57′09″E / 46.0041°N 8.9525°E / 46.0041; 8.9525

[AR2015-1] "Annual Report 2015" (PDF). BSI. Retrieved 15 June 2015.

[2] "EFG International announces completion of legal integration of BSI's Swiss business and launches its renewed brand - EFG International". EFG. Retrieved 2019-01-06.

[btgsale-3] "Generali Sells Swiss Private Bank to BTG Pactual for $1.7 Billion". The New York Times. Retrieved 4 December 2014.

[4] Bray, Chad; Dan Horch (14 July 2014). "Generali Sells Swiss Private Bank to BTG Pactual for $1.7 Billion". The New York Times. Retrieved 12 January 2015. In a conference call held to discuss the acquisition, BTG Pactual's chief executive, André Esteves, said that it was part of a plan to be a "global player in the asset management arena." The $200 billion in combined assets under management as a result of the deal was "a critical mass to continue to grow globally," he said.

[Rutishauser-5] Rutishauser, Arthur. "Die neuen Herren der BSI und ihre Vergangenheit" (in German). Sonntagszeitung. Archived from the original on 2015-01-22. Retrieved 10 January 2015. Die Erleichterung war gross, als im Juni bekannt wurde, dass die Banca della Svizzera Italiana (BSI), die Vermögen in der Höhe von 91 Milliarden Franken verwaltet, einen neuen Besitzer hat. Er heisst BTG Pactual, kommt aus Brasilien und hat mit André Esteves einen höchst erfolgreichen Chef, der einst UBS-Angestellter war.

[6] "MAS directs BSI Bank to shut down in Singapore". Archived from the original on 2016-07-29. Retrieved 2016-07-22.

[7] "BSI becomes first Swiss bank to settle under U.S. tax programme". Reuters. 15 March 2015. Retrieved 2 August 2022.

[8] Burgis, Tom (11 May 2016). "Dark money: London's dirty secret. An insider at a Swiss bank warned Britain's financial watchdogs that bankers in its UK office were offering services that could facilitate tax evasion and money laundering. Did the regulators turn a blind eye? The FT investigates the City's role as a global hub for illicit finance". Financial Times. Retrieved 24 August 2021.

[9] "Regulators accuse Swiss bank BSI over 1MDB scandal". Financial Times. 24 May 2016. Retrieved 2 August 2022.

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