10 Quick Facts about Standard Chartered

Last updated on January 2nd, 2017

Hello all!

Since I started my investment journey, I have always been planning to open a Standard Chartered Online Equities Trading account for my investment needs once I am qualified for a CDP account (in less than a year’s time now) as I recall that Stanchart OETrading Account provides the lowest commission fees the last I researched. However after the recent news of it shutting down its global equities business, which is a major change, it obliged me into re-researching about its business again…

In summary:

  1. StanChart will be closing its institutional cash equities, equity research businesses and cease offering capital markets services, such as initial public offerings, in attempt to save costs amounting to at least US$400 Million this year (US$100M coming from closure of equities business)
  2. StanChart has handled several local IPOs including OUE Commercial Trust, Frasers Hospitality Trust and Keppel DC Reit
  3. The closure would be likely to limit growth of StanChart as a private bank
  4. Discussions are ongoing if there should be an adjustment of chief executive to address pending issues, such as expansion of restructuring plans and writing of rights issue to raise capital
  5. StanChart shares have been dropping more than 40% over past two years and a quarter in the past year
  6. Biggest shareholder(18%) currently is Temasek Holdings
  7. Since Temasek’s investment, StanChart’s shares have been beating the MSCI World Banks index
  8. Sponsorship of Liverpool Football Club was extended two years ago till the end of the 2015-16 season
  9. In 2012, StanChart was accused of hiding US$250 Billion in transactions involving Iran (“rogue institution”) by New York Department of Financial Services (DFS) which ended exceptionally quick within a week by a settlement of US$340 Million fine, hence raising further re-investigations by several other US agencies
  10. In 2014, StanChart was fined $300 million by NYDFS again for violation of money-laundering compliance to high-risk transactions involving Standard Chartered clients in HK and UAE

 

So comes the question: Should I continue my investment on Standard Chartered Online Equities Trading account?

Regards,
The Independent Abecedarian

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