Monex Inc, the Tokyo-based subsidiary of online broker Monex Group, Inc. (TYO:8698), today announces that it has agreed on a partnership with Shinsei Bank, Limited and Shinsei Securities Co., Ltd., a wholly-owned subsidiary of Shinsei Bank. The partnership is in the area of the financial instruments intermediary business.

Under the terms of the agreement, Shinsei Bank’s investment trust accounts and Shinsei Securities’ rights and obligations for bond safekeeping accounts of its individual customers, mainly related to financial instruments intermediary transactions with Shinsei Bank, will be transferred to Monex through a corporate split (absorption-type). Shinsei Bank will continue to sell investment trusts and bonds to both its existing and new customers as the financial instruments intermediary agent entrusted by Monex.

Shinsei Securities will act as an intermediary for providing products to Monex.

The Partnership will allow Monex and the Shinsei Bank Group to jointly provide various asset management products and services to their customers by having Monex manage customer accounts and having Shinsei Bank conduct solicitation, sales and post-sales follow-ups.

Monex and the Shinsei Bank Group have agreed on the partnership in order to co-create value by leveraging their advantages. Monex and the Monex Group bring about product origination capability and extensive product line-up, while the Shinsei Bank Group leverages the customer base and consulting capability to provide higher-quality asset management services to their customers.

The collaboration will enable the Shinsei Bank Group to provide broadly-ranged financial products offered by Monex and the Monex Group. The Shinsei Bank Group will therefore be able to enhance the quality of its customer touch points and provide financial services that better meet the needs of individual customers by shifting its management resources that had been allocated to structuring and management of products to enhancing its consulting capability.

In addition, the partnership will expand the product sales channels and customer base of Monex, enabling the company to better respond to social needs for asset formation by leveraging its high product-structuring capability.

In the course of the company split, Monex is scheduled to take over the assets and obligations of Shinsei Bank’s investment trust accounts, as well as any and all rights and obligations incidental thereto.

The partnership will have marginal impact on the consolidated performance of Monex and the Shinsei Bank Group. The Final Agreement will be concluded by the end of March 2021 to start operation under the new structure at some point around January 2022.