The Stock Exchange welcomes a new member firm today as First NZ Securities begins life, continuing the retail broking services previously operated by Credit Suisse First Boston.
First NZ results from a management buyout following CSFB's decision last year to exit the retail market worldwide.
All the formerCSFB retail advisers in New Zealand have gone to the new company, which has full New Zealand ownership and management.
First NZ Securities chairman Bryan Johnson said clients "were telling us they could not afford to lose our team of highly experienced advisers. Accordingly, all CSFB advisers are joining First NZ Securities."
Demand for locally based investment advice is growing, and Johnson said First NZ Securities had the benefit of a strong global strategic alliance with CSFB.
The CSFB alliance means First NZ clients will have access to its New Zealand and global research.
"With an average of 15 years in sharebroking and investment advisory services, our team of advisers is arguably the most experienced in New Zealand," said Johnson.
First NZ Securities director Phil Hunter said the new firm would have 24 advisers and he hoped to increase its market share and staff numbers.
CSFB rivals Merrill Lynch and JP Morgan Chase both withdrew from retail broking in New Zealand last year.
Merrill Lynch sold its business to ABN Amro Craigs and JP Morgan sold its operation to Macquarie Bank.
Although the New Zealand Stock Exchange does not collect figures on the breakdown of institutional versus retail trading, it has said institutions account for about 10 per cent of transactions put through the exchange and about 60 per cent by value.
The remaining 90 per cent of trading activity, and 40 per cent of value, is transacted on behalf of retail clients.
