[SINGAPORE] Asset manager Invest Partners Capital Group (IPCG) is suing Deutsche Bank for allegedly breaching a contractual agreement governing their external asset management arrangement, according to court documents filed with the High Court last Friday (Jul 11) and seen by The Business Times.
The bank allegedly offered better pricing and terms directly to IPCG’s former client, Splendor Lights Holdings – conduct that the asset manager claimed “seriously undermined” IPCG’s ability to carry out its advisory role.
The pre-trial conference is scheduled for Aug 18.
Deutsche declined to comment when contacted by BT. However, a person close to the matter said the bank disagrees with the reported allegations and intends to vigorously contest any claims filed.
The case
Singapore-based IPCG holds a Capital Markets Services licence from the Monetary Authority of Singapore, and advises high-net-worth individuals and family offices.
Eric Chen, a senior director at IPCG, previously managed Splendor Lights through a Limited Power of Attorney, authorising IPCG to handle Splendor Lights’ investments at Deutsche.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Under the external asset manager agreement, Deutsche was to hold Splendor Lights’ assets and execute transactions initiated by IPCG, which was “solely responsible” for managing the client’s assets and determining the suitability of investments, court documents said.
The dispute centres on Deutsche relationship manager Sean Poh, who allegedly provided Splendor Lights with direct quotations for financial products that undercut IPCG’s pricing.
Poh also made statements to Splendor Lights that “were seemingly to disparage” IPCG’s professionalism, according to court documents.
Splendor Lights subsequently terminated its Limited Power of Attorney with IPCG in November 2023 and began working with Deutsche directly for asset management services, said IPCG in the filing.
At the time, Splendor Lights’ assets managed by IPCG at Deutsche were worth about US$42.8 million.
Court documents showed that from 2021 to 2023, when the Limited Power of Attorney was in force, IPCG earned retrocession – a form of commission – and performance fee payments of a combined US$3.4 million.
In the suit, IPCG is seeking for damages to be assessed, a declaration that Deutsche breached its contractual and fiduciary duties, as well as interest, legal costs, and other relief.
The asset manager is represented by Lin Yuankai and Annabel Kwek of Premier Law.
“We initiated this legal action to protect the rightful interests of our relationship managers and our company, and to call on banks to meet their duty of care toward their partners,” said an IPCG spokesperson.
“Banks should act as custodians and execution roles – not compete unfairly with external asset managers for clients or pricing advantage.”
