BNP
Paribas

An independent review by our team of experts

BNP Paribas was formed after the joining of Banque National de Paris (BNP) and Paribas in 2000.

With a presence in 68 countries and around 193,319 employees, the BNP Paribas group is a well-known name. They offer retail banking, corporate banking, institutional banking and investment solutions.

BNP Paribas was established in France as a Partnership Limited by Shares.

They are authorised and supervised by the European Central Bank (ECB), the ACPR (Autorité de Contrôle Prudentiel et de Résolution) and the AMF (Autorité des Marchés Financiers).

The main services offered to private clients by BNP Paribas include:

Islamic banking:
BNP Paribas works with the Sharia Board to put in place structures and Sharia compliant investments and finance solutions. They launched 'BNP Paribas Najmah', the global Islamic banking division around 18 years ago, to keep up with the growing demand for Islamic banking needs. This division of their bank is situated in Bahrain.
Real estate:
BNP Paribas claim to help international professionals based in the Middle East invest in the European real estate market. This division of their bank is called 'BNP Paribas Real Estate'. They offer property valuation and property management services in addition to their consulting services.

Wealth management:

BNP Paribas offer a wide range of services under wealth management.

These are usually aimed at entrepreneurs, families, expatriates, high-net-worth individuals and external wealth managers.

The wealth management services provided to private clients can be summarised below:

Tailored investment strategy	Wealth planning	Positive impact

Portfolio management	Credit leveraging	Sustainable and responsible investing
Investing	Strategic asset allocation	Philanthropists
Investment themes	Future planning	Clover rating
Diversification

1. Portfolio management:

BNP Paribas allows you the flexibility to either manage your investments on your own, take advice from a specialist or use their DPM (Discretionary Portfolio Management) solutions.

2. Investing:
They offer private clients investment opportunities based on their needs and risk profiles. The investment options include:
- equities,
- bonds,
- funds and
- structured investments.

3. Investment themes:
BNP Paribas keeps an investment theme every year that focuses on different tactical strategies. These change from time to time and we would recommend checking their website if you want to learn more.

4. Diversification:
BNP Paribas' private investment teams and wealth management service allows clients to diversify their portfolio and increase their global exposure. This also includes investing in real estate - which is not always recommended by our experts (learn more in this blog about property vs the stock markets).

5. Credit leveraging:
Financing solutions are also offered by BNP Paribas to it's private clients as part of their overall wealth management services. The credit offered includes bridge loans, mortgage loans, multi-currency credit, business financing, aircraft financing and more.

6. Strategic asset allocation:
BNP Paribas calls this the 'Strategic-A'. It is essentially a decision-making tool that allows you to get key indicators and identify strategic asset allocation guidelines. This wealth management service is reserved for their high-net-worth private clients.

7. Future planning:
True to the name, this service offered to private clients by BNP Paribas allows for long-term wealth preservation and includes planning for the transfer of wealth globally.

8. Sustainable and responsible investing:
Under this, BNP Paribas' wealth management team, selects the best SRI (Sustainable and Responsible Investments) funds. Investors looking to make a positive impact while investing are finding these SRI options appealing. These funds essentially support activities that help good causes and the environment.

BNP Paribas' clover rating is another initiative by their wealth management team to help private clients identify the level of sustainability of their investments.

Additionally, BNP also advices on philanthropic activities and claim to provide solutions that match your values.

NOTE:

We would highly recommend reading the 'expert verdict' section of this review to make an informed decision.

Additionally, here's a free guide that can help you achieve better results. In this guide, you'll learn:

Academic evidence only shared with a select few firms across the world
A real-life example of why you should never try to outguess the market
Why a fund's past performance is not enough to predict future returns
Why you need to focus on what you can control and why this leads to a better investment experience
Why you should accept the markets for what they are
What can impact behaviour and make people seek instant gratification

The Pros

> Well-known brand

> e-Banking

The Cons

> Expensive

> Not a fiduciary

> Sales approach

> Not the best way to invest

How can BNP Paribas' structured investment option help?

Structured investments is a strategy used by BNP Paribas' wealth management team that combines bond investing with derivatives.

Structured Investments are meant to provide clients with access to markets without constraints and flexibility. However, we would recommend reading this blog before making a decision.

What is MYIMPACT?

BNP Paribas has created a questionnaire that helps their private clients understand the impact their investment portfolio has on the environment and on other social issues.

In their own words, BNP Paribas says that they wish to promote an economy that respects ecosystems and is beneficial for all.

Expert assessment of BNP Paribas

BNP Paribas is a huge, well-known brand, which may mean that the traditional values you would expect from a private bank, such as trust and an uncompromising duty of care, are harder to achieve.

BNP can only push its own products and services, as opposed to being able to go to the market and find you the best available. Because BNP 'does everything', its private bankers are also likely to sell you a bit of everything. BNP is most interested in the very wealthy (10m GBP+) so smaller clients are likely to receive a lesser standard of service and banking.

If you are already a private banking client of BNP Paribas, we would recommend a no-obligation Second Opinion to ensure you are on track to reach your ideal future.

Additionally, we are happy to review the financial plan that has led to the investment portfolio you currently have.

The information in this material is intended for the recipient’s background information and use only. It is provided in good faith and without any warranty or, representation as to accuracy or completeness. Information and opinions presented in this material have been obtained or derived from sources believed by AES to be reliable and AES has reasonable grounds to believe that all factual information herein is true as at the date of issue. It does not constitute investment advice, recommendation, or an offer of any services or products for sale and is not intended to provide a sufficient basis on which to make an investment decision. It is the responsibility of any persons wishing to make a purchase to inform themselves of and observe all applicable laws and regulations. Unauthorised reproduction or transmitting of this material is strictly prohibited. AES accepts no responsibility for loss arising from the use of the information contained herein.

‘AES’ refers to the AES Group’s separate but affiliated entities generally, rather than to one particular entity. These entities are AES Middle East Insurance Broker LLC registered with the UAE Ministry of Economy, United Arab Emirates, Licence no. 571368, and Commercial Registration no. 75162 and regulated by the UAE Central Bank license no. 189; AES Financial Services Limited, incorporated and registered in England and Wales with company number 06063185, authorised and regulated by the UK Financial Conduct Authority FRN: 464494; AES Financial Services (DIFC) Ltd, registered in the Dubai Financial Centre (DIFC) as a foreign company, license no.2128, and regulated by the Dubai Financial Services Authority (DFSA) Reference No F003476; AES International Limited, a private company incorporated and registered in the British Virgin Islands with company number 1839872; AES International Global Limited, a private company incorporated and registered in the British Virgin Islands with company number 1887885. Please visit our authorisations page for further information on regulation, redress and accessibility.

If you are outside the UK and we advise you or carry out other business, nearly all the rules, regulations and arrangements made under the UK regulatory regime (including the rules made by the FCA and the dispute resolution process provided by the UK Financial Ombudsman Service) will not apply to most aspects of the service you receive, such advice or business being provided from outside the UK. You should therefore clearly understand such rights and protection as are afforded in the jurisdiction where you receive advice. Local law, regulation and redress processes will apply in almost all cases, and will be different from that of the UK.

RISKS

Investments involve risks. The investment return and principal value of an investment may fluctuate so that an investment, when redeemed, may be worth more or less than the capital invested. Past performance is not a guarantee of future results. There is no guarantee strategies will be successful. For further information, please click here.

BNP
Paribas

An independent review by our team of experts

REVIEW SUMMARY