J P Morgan sells unit to top Canadian bank

The two giants signed an agreement for the transaction likely to be completed next year. Without giving any details, the Royal Bank of Canada (RBC) said in a statement here that it has acquired "J P Morgan's third-party registered investment advisor servicing (IAS) business."

"The acquisition is subject to regulatory approvals and other customary closing conditions and is expected to close in the second quarter of 2010." The bank said the acquired J P Morgan business will be renamed and merged with its RBC Advisor Services which specialises in providing custody and clearing services.

"Growing and enhancing RBC advisor services is a strategic priority for our firm, and this acquisition represents an important step in our quest to become the finest investment advisory and wealth management firm in the US," John Taft, who is head of RBC Wealth Management, said. Chris Nastopoulos, national sales manager at the bank's investment advisor servicing business, said, "We are excited to continue growing our business as RBC advisor services."

The bank said its acquisition of J P Morgan's business is the latest step in the ongoing expansion of its RBC Wealth Management in the US. RBC Wealth Management serves affluent clients in Canada, the US, Latin America, Europe and Asia with a portfolio of investment, trust and other wealth management solutions. With more than 80,000 employees and offices in 53 countries, the RBC is Canada's largest bank and one of the leading banks in the world.