Hottinger & Cie

Hottinger Group is an international wealth management business headquartered in London providing family office, Investment banking and other associated financial services. [1] Hottinger is known as one of the first private banks created on 1 August 1786 by the Hottinguer family.

Hottinger Group
TypePrivate
IndustryFinancial services
PredecessorHottinger & Cie 
Founded1786 (1786)
FounderBaron Jean Conrad Hottinger
HeadquartersLondon,
UK
Number of locations
4
ServicesInvestment Management and Private Banking
Number of employees
25-50
Websitewww.hottinger.co.uk

History

Origins
the Hottinger Family Swiss Coat of Arm

The bank Rougemont, Hottinger & Cie was launched in Paris by Jean-Conrad Hottinger in 1786. The bank was located in the Hôtel de Beaupreaux in front of the Banque de France.

The partnership with Denis de Rougemont was effectively ended on 15 October 1790 when Jean-Conrad Hottinger stepped out on his own, launching Hottinger & Cie.

In or around 1799 Jean-Conrad added a 'u' to his family name to maintain the correct pronunciation of the name in French.

In 1803, France established a council of fifteen high bankers (haute banques). These individuals were known as Regents, with the council of Regents acting as the French central bank for 143 years until it was nationalised in 1946. Jean Conrad was appointed Regent of the Banque de France on 18 August 1803, with a succession of Baron Hottinguers sitting on the council.[2]

Jean-Conrad Hottinguer

In 1833, Baron Jean–Henri Hottinguer took the helms of "Hottingeur & Cie. In 1848, the bank bought Banque Delessert and moved the family home to the Hôtel Hottinguer on rue de la Baume in Paris. In 1866, Baron Rodolphe Hottinguer took over the Hottinger Bank. In 1920, Henry Hottinger took over his father at the head of the group.[2]

The balcony of the Cercle de la rue Royale in Paris by Tissot. Baron Rodolphe Hottinguer is in the picture, sitting on the sofa, without hat.

International development

The Banque de l'Union Parisienne was founded on 5 January 1904, with initial capital of 40 million francs. Société Générale de Belgique held 15%, with the private Parisian banks of Hottinger, Mirabaud, Neuflize, Mallet and Vernes capitalising this new investment bank.[3][4]

In 1968, seeking to expand the family's private banking activities, Baron Henri Hottinguer (1934–2015) moved to Zurich to establish a new Swiss division of Hottinger Group, with Hottinger & Cie in Zurich launching on 13 December 1968.[5]

In 1981, Baron Henri Hottinger (1934–2015) sought to further expand the Hottinger Group by launching operations in London, New York, Nassau and Luxembourg, which were independently capitalised and regulated in their respective jurisdictions by the Commission de Surveillance du Secteur Financier (CSSF) in Luxembourg, the Securities and Exchange Commission (SEC) in the US, and the Financial Conduct Authority (FCA) in the UK.[6]

In 1982, Hottinger Group merged its insurance division (Drouot Groupe) with Mutuelles Unies, becoming Mutuelles Unies/Drouot which was subsequently renamed AXA in 1985.

October 1997 saw Credit Suisse take a 70% stake in the French division of Hottinger Group, the original Banque Hottinguer, who changed its name to Credit Suisse Hottinguer. The remaining 30% stake was acquired in 2001 when Credit Suisse exercised its option to take 100% control of the French division. [7]

By 2008, with different branches of the Hottinguer family involved in the ownership and management of Hottinger Group, Baron Henri Hottinger found it necessary to retake control.[8] Further family disagreements followed, resulting in Rodolphe Hottinger resigning his executive positions in 2009 to establish a competitor wealth management business.[9]

In 2015, the Swiss division of Hottinger Group witnessed significant losses related to the fraudulent activities of an external asset management business, which ultimately led to the Swiss division's liquidation.[10] Heritage Bank and Standard Chartered acquired client assets from the appointed liquidator.[11]

From Bank to Family Office

Following the death of Baron Henri Hottinger in April 2015, his son Frédéric Hottinger inherited the vast majority of his father's estate, in particular a controlling interest in Hottinger Group.[12] Upon receiving his inheritance Frédéric Hottinger began merger discussions with a multi-family office (Archimedes Private Office). The Financial Conduct Authority (FCA) approved the merger of Hottinger and Archimedes on 26 July 2016 with the Hottinger Group now maintaining offices in London, Dublin, New York and Geneva.

In 2016 the Luxembourg division of Hottinger Group was sold to Iteram Investments [13]

In April 2019, the Hottinger Group launched an art consultancy service, Hottinger Art.[14]

Edmond de Rothschild Group announced the sale of their U.K. wealth management business to Hottinger Group on 26 October 2021. The transaction, subject to the UK regulator's consent, would see the clients and staff of Edmond de Rothschild Private Merchant Banking LLP transfer to Hottinger. Connected to this transaction, Edmond de Rothschild acquired a 42.5% stake in Hottinger Group. [15]

Companies forming Hottinger Group

Hottinger & Co. Limited
  • Company number: 01573969
  • Established 14 July 1981

Hottinger Capital Partners Limited
  • Company number: 07078765
  • Established 22 July 2009

Hottinger Family Office Limited
  • Company number: 499946
  • Established 13 June 2011

Archimedes Private Office Sarl
  • Company number: CHE-493.525.143
  • Established 11 July 2012

Hottinger U.S. Groupe Banque Hottinger & Cie Limited
  • Company number 691337
  • Established 8 April 1981

Hottinger Capital Corp. Groupe Banque Hottinger & Cie Limited
  • Company number 1190248
  • Established 28 July 1987

The XYZ Affair was a political and diplomatic scandal which led to the Quasi-War of 1798 between the French and the US. Jean-Conrad Hottinger (known as X), engaged as a French diplomat by the French foreign minister, Charles-Maurice de Talleyrand, led negotiations with an American diplomatic commission who sought to negotiate terms with the French to cease their Naval interdiction of American trade with Great Britain.[16]

In 2013, an external asset management business was involved in an embezzlement scandal. Fabien Gaglio, a private banker and shareholder of the franchise, confessed in January 2013 to the police he ran a Ponzi scheme on his own terms for 15 years, and stated that he had lost all the proceeds of his scheme. Gaglio was sentenced to 5 years in a Luxembourg prison (1/2 on parole) and a €150,000 fine.[17][18][8]

Disambiguation

There are a number of entities and individuals who also use the Hottinger - Hottinguer name, but which are distinct from the Hottinger Group:

  • Financiere Hottinguer SA (France)
  • Banque Hottinguer (France)
  • JFE Hottinger AG (Switzerland)
  • Hottinger Capital SA (Switzerland)
  • Philippe Hottinguer Finance SA (France & Switzerland)

See also

References
  1. "CEO Interview". citywire.
  2. "History". The Hottinger Group. Retrieved 4 January 2020.
  3. Bitsch 1994, p. 134.
  4. La Banque de l'union parisienne: Finance Immo, p. 2.
  5. "Hottinger & Cie (Switzerland) date of establishment". Bloomberg.
  6. "Hottinger Investment Management Limited". FCA Register. Financial Conduct Authority.
  7. "Credit Suisse Hottinguer table sur 4 milliards d'euros sous gestion".
  8. "Révélations sur la faillite de la banque Hottinger". Bilan (in French). Retrieved 4 January 2020.
  9. "Rodolphe Hottinger IM AG". Moneyhouse.ch. Swiss Companies House.
  10. "Swiss private bank Hottinger faces bankruptcy". SWI swissinfo.ch.
  11. "La Banque Heritage des actifs de la Banque Hottinger". Bilan (in French). Retrieved 4 January 2020.
  12. "Frédéric Hottinger". The Hottinger Group. Archived from the original on 13 January 2017.
  13. Ruche, Sébastien (21 May 2017). "La société financière d'Alexandre Col fusionne avec Hottinger Luxembourg". Le Temps (in French). ISSN 1423-3967. Retrieved 4 January 2020.
  14. Gonçalves, Pedro (11 April 2019). "Multi-family office Hottinger launches art consultancy services". www.internationalinvestment.net. Retrieved 4 January 2020.{{cite web}}: CS1 maint: url-status (link)
  15. "Edmond de Rothschild Partners U.K. Wealth arm".
  16. "XYZ Affair". American History Central.
  17. Vaughan, Liam (17 December 2017). "He Stole $100 Million From His Clients. Now He's Living in Luxury on the Côte d'Azur". www.bloomberg.com. Retrieved 4 January 2020.{{cite web}}: CS1 maint: url-status (link)
  18. Dubas, Sébastien (26 October 2015). "La Banque Hottinger & Cie placée en faillite par la Finma". Le Temps (in French). ISSN 1423-3967. Retrieved 4 January 2020.
  • Messieurs Hottinguer Banquiers à Paris, Max Gérard, 1968, Tome Premier
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