MultiBank Group has acquired the client and operational assets of AETOS in China, the companies exclusively shared with Finance Magnates. The news comes amid ongoing consolidation in the Chinese market amid a crackdown on the part of local authorities on the industry.
The financial terms of the deal have not been disclosed, but the customer base in mainland China of AETOS is evaluated at tens of thousands of clients. The CEO of the target company, Draco Ng, is joining the firm alongside a vast number of other employees, including developers, sales, and support teams.
The deal comes at a time when brokers in Australia have actively been resisting pressure on the part of the local regulator which has mandated firms to present legal opinions that state they are allowed to operate in China and other jurisdictions outside of Australia.
New Clients & Employees
The customers of AETOS in China will be transferred to MultiBank Group through a new division by the name of MBG. Ng will be serving as the CEO of the new subsidiary. Operations of the target company outside of China are not included in the deal.
“Our customers should expect a smooth transition and will continue to be serviced by the same sales and support team as prior to the transfer. Moreover, as the CEO of MBG, the new division of MultiBank Group, we will ensure that the customers will enjoy the same level of excellence in service, execution speed, technology, trading conditions, security of funds, customer support and all other related matters,” Draco Ng elaborated on the transition.
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In statement shared with Finance Magnates an AETOS representative elaborated: “After deliberating our communication with ASIC and the professional advice from various leading law firms, the board of directors of AETOS has decided to cease the provision of financial services to clients residing in mainland China and officially terminate its operation in mainland China in an orderly manner from 15th June, 2019.”
Clients Transfer Next Weekend
The transfer of clients between the companies is scheduled to take place next weekend after the close of financial markets on the 8th of June 2019 (Saturday). The new company will continue to be operating in China via the FSC-licensed subsidiary of Multibank Group called MultiBank FX International.
The acquisition by MultiBank Group comes after a significant expansion of the Group’s operations globally after the establishment of MEX Asset Management in Frankfurt, MEX Wealth Management in the Cayman Islands, MEX Fintech in Hong Kong, MEX Spain in Barcelona, MEX MENA in the UAE and MEX Capital Markets in Mexico.
Commenting on the matter, the Marketing Manager of MultiBank Group, Sophia Barnes, said: “The Group is now finalizing further expansion in England, Kuwait, Philippines, Indonesia, and Kenya, all of which are envisaged to be operational in 2019. This brings the total global reach of MultiBank Group to 18 offices worldwide.”
FCA License Application
MultiBank Group also shared with Finance Magnates that it is in the process of applying for an FCA license in London. According to the company, different subsidiaries of MultiBank Group are currently licensed and regulated by BaFin in Germany, FMA in Austria, CNMV in Spain, FSC in the BVI, ASIC in Australia, CIMA in the Caymans, and RAK in the UAE.