RBS International Securities Services is a market leader in the provision of securities related services in the UK offshore markets of Jersey, Guernsey and the Isle of Man. It provides global custody services, fund administration and corporate trustee services to fund managers and to managers of private wealth clients. With 176 employees in its 3 locations, it holds in excess of £30 billion of assets under custody and £6.2 billion of assets under administration.

Upon closing of the transaction, BNP Paribas Securities Services, the leading European headquartered provider, will have strengthened capabilities in servicing offshore funds, while completing their coverage of the European offshore markets.

Commenting on the agreement, Jacques-Philippe Marson, chief executive officer of BNP Paribas Securities Services said: "As part of our global growth strategy and our commitment to servicing clients, RBS International Securities Services stood out as an attractive opportunity to reinforce our position in the buoyant UK offshore market, and further answer clients' growing needs in this arena."

Ian Henderson, chief executive of RBS International, commented: "Our Securities Services division has been a successful business for the Bank but it is a specialist sector and our strategy is to concentrate on our core business strengths. This means investing in our banking services for personal, corporate, institutional and international personal customers."

"The Bank is delighted to have found a buyer that is a major player in this market to invest in the future of this specialist business. This deal will offer opportunities to the current staff as well as ensure that clients will benefit from sole ownership of BNP Paribas and the investment they will bring", added Mr Henderson.

Tim Keaney, senior executive vice president and head of global investor services at The Bank of New York, said, "We are very proud of the business that has been built in the Channel Islands and Isle of Man. Now is the right time for the business to move to the next level under the sole ownership of BNP Paribas. Our focus will continue to be on our institutional client base and on the offshore markets of Luxembourg and Ireland, together with the continued development of our business in continental Europe."

Mr Marson added, "BNP Paribas Securities Services is known for excellent client service and this deal strengthens our client offer in a number of ways. Not only are we welcoming a highly-skilled and committed team from RBS International Securities Services, but we are also building further significant scale to our Jersey operations and extending our geographical coverage in the UK offshore islands, further accompanying our clients in this fast-growing area."

"We will concentrate on growing the existing client base as well as creating opportunities to further cross-sell BNP Paribas products in this market", he concluded.

BNP Paribas is offering positions to all staff within RBS International Securities Services.

Staff were given details of the announcement this morning and clients are being contacted to confirm that it will be business as usual during the transition and on completion of the acquisition. The deal will complete once regulatory approvals are in place.