After cutting the people in its private client advisory business adrift Credit Suisse First Boston New Zealand (CSFB), has now agreed to help them establish a new business.
CSFB announced earlier this month that it was no longer going to offer private client advice, instead it would concentrate on the institutional side of the market. As a result of this decision more than 50 people were expected to lose their jobs.
However, CSFB says it will now sell its private client business to a new firm, First NZ Securities (FNZS), which will be run and managed by the soon-to-be made redundant executives.
CSFB has has signed a letter of intent with the current executives in its private client advisory and broking division concerning the sale and transfer. The contract is still subject to finalisation.
"We will ensure a smooth transition for our clients, who will continue to be serviced by the same advisors both before and after the transition to First NZ," CSFB chief executive Bill Trotter says.
First NZ Securities will operate from offices in Wellington and Auckland and is aiming to start business on March 1. It will continue to provide a full range of advisory and transactional services to clients.
First NZ Securities will have access to CSFB's New Zealand and global research.
Earlier story:
CSFB to close retail arm
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