Merrill-HSBC to launch German online broker

Frankfurt, Aug 24: US brokerage Merrill Lynch and global investment bank HSBC on Friday said they would launch a German online broker in 2002 targeting wealthy clients in a head-on challenge to the nation’s biggest banks.

Mr Nathan Moss, chief operating officer of the Merrill-HSBC joint venture, said that the partner banks were not put off by dull market conditions and would target Germany’s "mass affluent" sector for clients with $100,000-$350,000 to invest. "We’re not put off by the market conditions," he said.

"We know that all the conditions are there for people to take control of their investments themselves and to work with a provider with a good position in the market," Mr Moss said.

The banks will set their threshold for accepting clients below the $100,000 level as they lure investors with potential with their offer of global market access, research and name-brand credibility, he said.

"We recognise that not all clients will walk in on day one and give you all their wealth. You obviously have to give clients the chance to sample your services," he said.

"We aren’t a discount brokerage. We’re not trying to replicate that model. We’re a multi-channel wealth manager," Mr Moss said.
In Britain, clients need a minimum of 10,000 pounds ($14,450) to invest. The banks, now operating in the UK, Canada and Australia with the web address www.mlhsbc.com, plan to tap expected growth in Germany’s savings market.

(Reuters).