Deutsche Bank closes 4,000 private wealth accounts

An operational review by Deutsche Bank Private Wealth Management (PWM) has resulted in the closure of around 4,000 client accounts over the past year, Citywire Wealth Manager understands.

Deutsche PWM has undertaken a major review of its client books and it is understood around 4,000 ‘low value’ accounts have been shut down, while some have been moved into a collectives-based service.

When Deutsche Bank acquired Tilney Investment Management in late 2006, it inherited a number of low value accounts amongst a list of 15,000 clients on whose behalf it invested around £8.1 billion in assets.

Since it took some time to finalise its business model and integrate Tilney into its global wealth management arm, Deutsche Bank only started a wholesale review of its client book last year.

Under the leadership of Tom Slocock, head of Deutsche PWM UK, the firm has been writing to clients who have dormant trading accounts – or insufficient funds – within their portfolios.

Gearing for growth

Deutsche Bank insiders say the wealth manager has been embarking on a ‘housekeeping programme’ in order to create additional capacity to grow the business.

One source said: ‘This is common practise and a regular discipline amongst all banks. It gives us the flexibility and capacity to execute our growth plans.’

Although Deutsche PWM has been closing accounts on the lower end of its books, people within the firm say the company remains committed to the mass affluent market, in addition to its strong focus on high and ultra-high net worth segments.

Mass-affluent sector