RESTRUCTURING EXERCISE
Sasfin plans to ring-fence bank to help bypass banking laws
Sasfin says it will ring-fence its bank in a plan to divide the group into three distinct units so that burdensome banking regulations do not apply to other parts of the business. It would separate banking, wealth and capital into separate legal entities — largely in place already — each with independent operations and management, executive director, Michael Sassoon said on Thursday. "We see huge scope for growth for each unit," Sassoon said. Separately listing the units was not on the immediate agenda, but could not be ruled out completely, he said. The restructuring exercise was subject to regulatory approval. Investment managers said the plan made sense and was in line with other banks. Focused management teams with the right skills were needed to grow Sasfin’s businesses, said Samantha Steyn, portfolio manager at Cannon Asset Managers. "[Sasfin] just doesn’t have the scale, which means that two large impairments can have a significant effect on the bottom line," Steyn said. Two ...
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