A trio of European wealth boutiques have merged to help manage the growing regulatory demands across the industry.
Luxembourg-based European Capital Partners has joined forces with Colombo Wealth Management and Twenty First Capital, which are based in Switzerland and Paris respectively, to form a new firm called EC21.
Between them the three businesses will control around €4.5 billion (£4 billion) in assets under management.
The merger comes less than two weeks after the introduction of Mifid II.
While EC21 did not make a direct link between the new European legislation and the merger, it indicated growing compliance demands were a deciding factor for the unification.
EC21 chief operating officer Lennart Duschinger said: 'In an increasingly regulated world, where administrative and compliance tasks as well as risk management become ever more complicated and particularly time-consuming, we believe there is a need and a demand from independent wealth managers to delegate these tasks to specialists.'
'EC21’s goal is to build a long-term partnership with wealth managers, enabling them to refocus their full attention on the creation, management and protection of their clients’ wealth, instead of spending excessive time on administrative, compliance and risk management tasks.'
EC21 will be headquartered in Luxembourg.
ECP Partners chief investment officer Léon Kirch said: 'Luxembourg was the natural choice for this new wealth management venture because of its central location in Europe, its multicultural background enabling EC21 to service clients across the EU, the quality of its service providers and, last but not least, its solid and pro-business legal and regulatory framework.
'I believe EC21 is the ideal structure to start offering wealth management services while maintaining the identities and independence of each of the three individual asset management boutiques.'