Deutsche Bank Accused of Bypassing EAM in Singapore
An external asset manager in Singapore is suing Deutsche Bank for allegedly breaching a contractual agreement by undermining it and dealing directly with its client.
Invest Partners Capital Group (IPCG) is suing Deutsche Bank for allegedly breaching a contractual external asset manager (EAM) agreement, according to a legal document seen by finews.asia.
The German lender is being accused of offering better pricing and terms directly to EAM IPCG’s ex-client, Splendor Lights Holdings, which «seriously undermined» its ability to carry out its advisory role. Deutsche Bank relationship manager Sean Poh, who allegedly provided the direct quotations to Splendor Lights, is also accused of making statements that were «seemingly to disparage» IPCG's professionalism.
EAMs act as an intermediary between their end-clients and banks. Compared to a traditional relationship between a client and a single bank, EAMs traditionally differentiate themselves by leveraging their scale from serving a group of clients to tap into the offerings of multiple banks to provide attractive pricing and independent advice.
Assets and Commissions
While IPCG was serving Splendor Lights, the latter had around $42.8 million in assets managed by the former, with $3.5 million in retrocessions and performance fees earned from 2021 to 2023. IPCG is seeking damages, a declaration that Deutsche Bank breached its contractual and fiduciary duties, alongside interest, legal costs and other relief.
«We sincerely urge our counterparts in the financial industry to respect the professional roles and collaborative models within the industry as a whole,» said an IPCG spokesperson. «Banks should act as custodians and execution roles – not compete unfairly with EAMs for clients or pricing advantage. When banks offer different pricing directly to our clients, it creates a conflict of interest, erodes trust in both parties, and disrupts the integrity of the industry.»
A pre-trial conference is scheduled for August 18.
