How will HSBC’s Wealth & Tax Advisory Services benefit people in developing as well as developed nations?

HSBC Holdings, one of the world’s leading financial groups, has signed an agreement to sell Wealth & Tax Advisory Services (WTAS) in a management buyout for US$65.85 million.

HSBC said that it would receive US$5 million in cash, followed by deferred notes totaling US$60.85 million. Under the terms of agreement, the company will also have an option to acquire a 19.9 percent stake in WTAS, subject to further changes.

Chris Meares, HSBC Private Banking chief executive, explained that "we’d like to focus on developing our core private banking activities in both developing and developed markets." WTAS is one of the biggest national independent firms with focuses on providing tax, valuation, financial advisory and related consulting services in the U.S.

HSBC Hong Kong shares closed yesterday at HK$130.90, down HK$0.80.

Will we see other banks follow in HSBC's footsteps?