CLSA heads fly in to prop up morale

Broking and advisory firm CLSA has ‘fully committed’ to its Australian business.

Jonathan Slone is set to take a senior role with Jefferies in Asia. Picture: John Feder.

Stockbroking and advisory firm CLSA has “fully committed” to its Australian business as it attempts to weather the mass staff departures that have hollowed out its local unit.

Responding to questions from The Australian, which broke the news of the exits on Friday, CLSA global chief executive Rick Gould said: “CLSA is fully committed to its Australian business and all ­onshore and offshore clients.

“Over the past 10 years, we have built an outstanding platform in equities and corporate ­finance, and we have the full ­support of CITIC Securities to maintain and grow our franchise going forward.”

Mr Gould, flanked by three CLSA executives including his human resources boss, flew into Sydney at the weekend to address the situation after US firm Jefferies raided its ranks late last week.

Mr Gould spoke to staff yesterday and it is understood he reiterated CLSA’s commitment and stressed it was one of the few overseas-based banks that had made inroads in Australia after entering the market about a decade ago.

Players such as Malaysia’s CIMB and Japan’s Nomura have retreated from the local equities market over that period.

The scaling-up in Australia by Jefferies puts the continuation of its alliance with local outfit Evans & Partners, the stock­broking arm of Evans & Dixon, in doubt.

About 26 of CLSA’s local staff resigned last week, including Australian chief Andrew Norman and head of trading Karl Guilfoyle. About 40 employees ­remain across CLSA’s Australian offices.

The hiring spree by New York-listed Jefferies is expected to result in its investment banking boss, ­Michael Stock, taking the reins as country head while former CLSA global chief executive Jonathan Slone is set to take a senior role with Jefferies in Asia.

Jefferies appears to be launching a global assault and is said to have lifted four equities sales staff out of CLSA’s London office. Former CLSA global strategist Chris Wood has already joined Jefferies.

The CLSA departures follow cuts to the firm’s bonus pool and the expiry of an agreement last year that ensured CLSA was run at arm’s length by China’s CITIC, which acquired the CLSA business in 2013.