RIO DE JANEIRO, BRAZIL – With the structure in place, several companies are setting up their financial offices in Uruguay to boost private banking, and thus being able to triangulate and open accounts in the U.S. Hence, the “sky-blue” dollar is born. [Uruguay’s national soccer team is known as the “celelste” (sky blue) after the color of its uniform.]
CASE BY CASE
Puente has had a subsidiary in Uruguay for almost 10 years where it serves local and regional clients (individuals, companies and institutions), while in Paraguay it has been operating for over 5 years.
Allaria, Alchemy and AR Partners are others in Uruguay under the name Latin Advisors, while Marcelo Menéndez, vice-president of the Buenos Aires Stock Exchange and of Byma, is considering having a subsidiary of his SBS Group in Uruguay.
Balanz, which has offices in Panama and the United Kingdom, now opened in Montevideo focused on the development of the Wealth Management business with onshore and offshore investment strategies.
It has just acquired CFS Advisors Agente de Valores in Uruguay from EAN Holding, which manages assets worth US$500 million, compared to Balanz’s US$3 billion.
“CFS Advisors gives Balanz the offshore part by operating from the Montevideo free trade zone called Zonamerica and by also having a direct agreement with Pershing allows clients to access a multiplicity of investment products in the international market. Balanz had agreements with StoneX and Crédit Suisse, so through CFS Advisors it will now also have an agreement with Pershing,” Citywire points out.
ANOTHER BUYOUT
Grupo Supervielle is yet another focusing in Uruguay by acquiring 100% of IOL Agente de Valores’ shares, which will operate through an online modality with a platform developed to this end, focusing on brokering securities on behalf of third parties.
Its services will be aimed mainly at Latin American individuals (non-residents of Uruguay), offering them the possibility of operating in the U.S. market. To this end, it has submitted an application to the Central Bank of Uruguay for authorization to act as a securities broker.
WEALTH MANAGEMENT
In the city of Buenos Aires it is seen as a strategy for all Wealth Management (clients with more than US$150,000) who have residence in Uruguay with business in Argentina.
“If you have a bank account in Uruguay it is easier to transfer securities negotiated in Buenos Aires, but CCL has a special cost: some charge extra fees although with lower commissions. The reason for having an account abroad is to simplify the cable operation because you arrange it in Buenos Aires and settle it abroad,” a broker in the Argentine market informed.
“If you have a bank account in Uruguay, it is much cheaper and faster for an individual or even a company to transfer its dollars abroad,” he exemplified.