PETALING JAYA: RHB Bank Bhd’s wholly owned subsidiary RHB Investment Bank Bhd (RHB IB) is proposing to undertake a reorganisation of its equity and economic research operations.
The research operations, which are currently housed under RHB Research Institute Sdn Bhd (RHB RI), will be reorganised into a division within RHB IB while the fixed income and currencies research function is to be absorbed by RHB Bank, subject to all applicable approvals.
RHB RI is currently a wholly owned subsidiary of RHB IB.
“The proposed reorganisation is intended to streamline the research operations under RHB IB and RHB Bank, and rationalise the costs of maintaining a separate licensed entity for research,” RHB Bank said in a stock exchange filing today.
The exercise is subject to the approval of Securities Commission Malaysia and conditional upon the successful application for a variation in RHB IB’s Capital Market Services Licence (CMSL) to include the regulated activity of investment advice.
The proposed reorganisation will be effected via an asset purchase agreement (APA) to be entered into between RHB IB and RHB RI and will include a novation of contracts entered into by RHB RI and a transfer of employees. Similarly, RHB Bank and RHB RI propose to enter into an APA in relation to the transfer of assets.
The exercise is expected to be completed by the first quarter of 2019.
Source: The Sun Daily