Open architecture plan launched by BNP Paribas

French financial services group BNP Paribas has launched an open architecture initiative that will embrace four different arms of the organisation.

Valerie Meurice has moved from her previous role as head of fund selection at BNP Paribas Asset Management (BNP PAM), to become general manager of the new venture. The unit will act as a gate-keeper, selecting funds for inclusion in products handled by BNP PAM, BNP Paribas Private Bank, the Cardif insurance company and the Cortal Consors funds platform. The board will be comprised of BNP PAM’s chief operating officer Vincent Lecomte, group product distribution chief Marc Raynaud and Olivier Legrand from Cortal Consors.

The aim of the venture is to give BNP Paribas an increasing role as an independent fund selector and to eventually compete with consultants such as Mercer in the European and US markets. Discussions are also believed to be under way with an external shareholder.

“We will build up our internal service first, followed by selection and advisory business for third parties,” said Mr Raynaud. “This decision has been made at BNP Paribas group level, joining forces for open architecture and setting up a specialised company for third-party manager selection.”

BNP Paribas’ huge retail banking franchise, is however, not yet on board with the latest initiative. “The retail banking network is not very open yet to third party products for various reasons,” confided Mr Raynaud.

“Retail banking people have a lot of things to sell, including loans, credit cards and checking accounts. There is a simple and limited offer for their clients. They are not willing yet to sell third party products.”

However, the branch network started to sell a fund of funds overseen by BNP PAM, which does include some third party offerings, four years ago.

BNP Paribas differs from many other banks in that any external provider looking for shelf-space must get the OK from the asset management company, rather than the retail banking hierarchy before proceeding.

Meurice: general manager of venture