Why is the bank giving up its European direct investing presence?
TD Bank Group has agreed to sell its European direct investing business to Interactive Investor plc (II), subject to regulatory approval, according to a news release. There will be no immediate change for either company’s customers.
"We're very pleased to have reached this agreement with Interactive Investor, a highly regarded team who will ensure that TDDI customers continue to have access to excellent products, services and technology,” said Leo Slalom, executive vice president, TD Wealth, TD Bank Group. According to Slalom, TD Bank Group will remain focused on its core areas of growth in North America, where they it is a top-10 financial institution.
TD Bank Group’s Wealth franchise currently serves 2.2 million clients and manages over $700 billion in client assets across Canada and the US.
II is expected to make good use of its new acquisition, which it will execute by purchasing of the shares of TD Wealth Holdings (UK) Limited and TD Bank International S.A. (Luxembourg) (collectively, "TDDI"). The acquisition will create the UK’s second-largest online stockbroker, with more than 300,000 customer relationships and assets under administration worth £18 billion, or approximately $30 billion.
“The combined business will be firmly on the side of the individual investor, helping investors by providing efficient customer service, competitive and transparent charges, and easy access to online investment and saving services,” said II in a separate release, which can be found on the company’s website.
The transaction is still subject to regulatory approval, which is likely to push through by early 2017.
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