The Chinese regulator has announced on its website that it has granted a funds distribution licence to UBS AG’s wholly owned subsidiary, UBS Qianhai Wealth Management Company.
According to the document, the company has to complete the preparation work for operation within six months in accordance with the law and compliances.
Within 15 days after the industrial and commercial registration, UBS Qianhai must apply for a securities and futures business permit before distributing funds, said the CSRC.
UBS has declined to disclose further details of the approval.
“The development of the Greater Bay Area (GBA) forms a significant component of China’s national strategy. Shenzhen is the key engine behind such development and also one of the most important bases incubating fintech,” said Andy Ho, head of UBS Qianhai, in an announcement.
The bank is also committed to increase its investment in the GBA in support of Shenzhen-Hong Kong collaboration, and to launch unique wealth management experiences to clients, leveraging the GBA’s strength and opportunities, according to a statement.
UBS Qianhai is the second wholly foreign owned enterprise which obtained a fund distribution licence after Qingdao Yicai Fund Distribution, wholly owned by Italy’s Intesa Sanpaolo, obtained its licence in October last year.
UBS Qianhai was established in 2018, with its main operation in wealth management consultation, asset management, and the development of accounting software. The company has a registered capital of RMB206million ($31.9m).
The GBA consists of nine mainland cities, Hong Kong and Macau, with 70 million people and a total GDP of around $1.7trn, according to a report by Bain & Company earlier this year.
