Magazine article American Banker

As Fidelity Closes U.K. Unit, Barclays Targets Its Clients

Magazine article American Banker

As Fidelity Closes U.K. Unit, Barclays Targets Its Clients

Article excerpt

In a bid to expand its discount brokerage business, Barclays Stockbrokers said it would pursue customer accounts from Fidelity Brokerage Services' British unit, which is set to close this month.

A unit of the United Kingdom's Barclays Group, Barclays Stockbrokers said it planned to initiate joint mailings with Fidelity's British division this week in an attempt to pick up some of Fidelity's British accounts.

Boston-based Fidelity last week announced plans to close the U.K. brokerage unit it established in 1987. The move came roughly a year after the firm ran into regulatory barriers in the U.K. following technical reporting problems.

Tom Sheridan, a managing director with Barclays Stockbrokers, described the deal with Fidelity as an "alternative supplier arrangement."

Barclays is "effectively the preferred supplier," in that it is the only broker putting an information packet in the Feb. 5 Fidelity mailing, Mr. Sheridan said. The mailing gives Fidelity customers three options: They can transfer their holdings to a Barclays account, liquidate their portfolio, or transfer to another broker.

Barclays plans to invite most of the 15,000 actively traded accounts in Fidelity's U.K. portfolio into its fold, Mr. Sheridan said. Barclays is restricted from pursuing U.K. accounts held by U.S. clients because the firm is not a registered broker in this country.

"If they call us on an unsolicited basis we could take them, but we're not able to take them unsolicited," Mr. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.