GLOBAL - Nearly 70% of all asset management merger and acquisition activity in the third quarter were a result of banks shedding their asset management arms, data by Jefferies Putnam Lovell showed.
Examples included Bank of America's US$1bn sale of its Columbia Management business to Ameriprise and Sumitomo Trust & Banking's US$844m acquisition of a 64% stake in Nikko Asset Management.
Jefferies managing director Aaron Dorr said: "As larger financial institutions refocus on strategic strengths, we expect they will continue to separate asset management distribution from manufacturing, keeping the former and seeking solutions for the latter businesses."
The firm tracked 38 deals in the third quarter of the year, down from 66 the same time last year. However, the amount of assets transacted reached $749bn, up from $728bn a year earlier.
For the first nine months of the year, there were 113 deals completed, down from 174 deals a year earlier.
The Ameriprise and Sumitomo deals topped the five largest deals for the quarter. The remaining largest deals were Artio Global Investor's $650m initial public offering, Pacific Century's $500m acquisition of AIG's asset management business and Macquarie Group's $428m acquisition of Delaware Management from Lincoln Financial.
Enhanced powers for The Pensions Regulator (TPR) to prosecute and fine company directors who "wilfully or recklessly" put their defined benefit (DB) pension scheme at risk will be hard to enforce, commentators say.
Melrose has pledged to contribute up to £1bn to GKN's pension schemes as part of a final offer to acquire the engineering business.
Existing master trusts will be forced to pay £41,000 when applying for authorisation under the upcoming regime, the government has confirmed.
UPDATE 2 - DWP publishes DB white paper: Stronger powers for TPR, DB chair statements to be introduced
The Pensions Regulator (TPR) will be given the power to fine company bosses who deliberately puts their defined benefit (DB) schemes at risk, the government has confirmed.