Hervé Ordioni is the CEO of Edmond de Rothschild Monaco. For the past seven years, he has been instrumental in positioning the bank as a front runner in the Principality.
The avid rally driver and father of five spoke to Monaco Life about the growing success of Edmond de Rothschild Monaco and how the marketplace has changed since Prince Albert II took the throne.
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Monaco Life: Can you tell us a bit about yourself?
Hervé Ordioni: I graduated from Dauphine University Paris and completed a masters in international wealth management. I have been with the Rothschild family since 1992. I began my career as a broker, and then became a financial analyst in the Netherlands, before returning to Paris to work within private banking. I started as a tax planner, specialising in life insurance solutions, structuring wealth for entrepreneurs selling their companies. I am privileged to have been the CEO of Edmond de Rothschild Monaco since 2013.
What brought you to Monaco?
Coincidence and a Corsican surname. In 1995 a job opened up at Edmond de Rothschild Monaco and whilst passing by my office in Paris, management noticed my surname on the door, delighted in the fact that I was of Latin heritage and decided I was a perfect fit for Monaco. Luckily my wife, who was born in the south of France, agreed to this exciting move and the rest, they say, is history.
What did this branch look like when you took over?
Edmond de Rothschild’s presence in Monaco dates back to 1986, and I joined in 1996 when there was a small office with just 22 people. We have since grown substantially from being a portfolio management company only to today, where we have close to 200 colleagues offering wealth management services including discretionary and advisory portfolio management service, credit facilities, life insurance brokerage and wealth solution capabilities. I am proud of all we have achieved, but in particular I am proud of our Edmond de Rothschild Gestion department that manages investments for our clients and for Monegasque funds. Our investment performance is first class, consistently ranked 1st or 2nd in the Principality, and I believe we have the highest penetration of discretionary mandates of any Monaco bank – a true sign of the trust our clients place in us. Today, with over €10 billion assets under management and €1.5 billion credit facilities, we have the size but still the nimbleness to deliver to our clients.

How have you managed to stand up against the very large, well established Monegasque institutions?
‘Rothschild’ is a magic brand – it is known all over the world, and not only for financing. There are four pillars of the Rothschild brand: Financing; Heritage – including hotels, restaurants, wines and farming; Foundations; and ‘Gitana’, our record-breaking yacht and its team. The architect of the boat is Guillaume Verdier, who is famous for designing foils. The Monaco Yacht Club has bought two previous Gitana boats – Malizia I and Malizia II. So, we are  very well known as specialists in that area. By the way, Gitana 17 was the winner of the latest Brest Atlantiques race.
You are also the President of the Commission for the Promotion of the Monaco Financial Centre. What does that involve?
The committee is part of the Monaco Association for Financial Activities (AMAF) and has two main missions. Firstly, we take care of the Monaco for Finance website, trying to provide as many news articles and interviews as possible so that people around the world have information about the market place. Or at least have an incentive to call and get more information.
Secondly, my role is to explain the legal framework of the marketplace for those considering setting-up a finance-related business and make it attractive for people considering relocating to Monaco. People who relocate here must bring part of their financial assets, so we want to make sure they are comfortable with the marketplace, that they know they can find experts who will provide world-class services and products, etc.
People come to Monaco for the sun, the location, the security, and more. But at the end of the day, if you are wealthy you must be able to set up your family office here, to have people working close to you and provide the administrative and financial services you are seeking, so you can fully enjoy your life in the Principality of Monaco. I help spread this message internationally  and I have been in this role since 2016.

Who else makes up AMAF?
We are one of five standing committees that make up the AMAF. The entity was established 50 years ago to act as the professional body for authorised institutions conducting banking or financial activities in the Principality; to represent the Monegasque banking industry, particularly in relations with public authorities; and to promote the sound development of Monaco’s banking sector. All the members are volunteers, and each commission is chaired by a professional of the marketplace. We work very closely with the Monaco Economic Board and Guillaume Rose’s team.
How has the marketplace in Monaco changed over the years?
It is impressive to see the expertise that has been developed here over the past 15 years, since HSH Prince Albert II of Monaco took the throne and demanded that the financial marketplace in Monaco take an ethical and moral approach. At that time, with offshore businesses migrating to become onshore businesses, we had to significantly shift our business model and of course we lost some clients. But because the Principality is a very attractive place for families to live, we also gained clients, and they were exactly the kind of clients that Monaco was transforming for.
In the meantime, the AMAF has been working hard towards the education and qualification of finance professionals together with the University of Monaco. We set up a mandatory programme for front officers so we make sure we have highly qualified people in front of clients. We also put in place an ethical certification last year. So, the AMAF is very active considering all the topics we are faced with: education, qualification, knowhow, and confidentiality. I am very impressed by the commitment of my colleagues and the job that is done by AMAF President Etienne Franzi.

What marketplace trends are you seeing now?
Assets under management in Monaco continue to increase, testament to the continuing evolution of Monaco into a safe, exciting and rewarding place for wealthy families, entrepreneurs, and finance professionals. The banking industry continues to consolidate, however we see the stronger brands increasing their footprint here, whilst at the same time weaker ones leave or struggle to adapt to the high bar that Monaco now sets.
Indeed, I am very confident about the state of the marketplace. The Principality is very well managed – it is debtless, always in surplus, and there is a constant drive for improvement across all sectors. Monaco has now at least drawn level with most of its international competitors and in many areas we are now excelling and setting the standards. We may be small but we are increasingly impactful.
Is Monaco set to benefit from Brexit?
Brexit is just another example of political, social and economic unrest. As geopolitics take centre stage, tax regimes change, and personal security is challenged, it is almost a given that Monaco will see a continued increase in applications for residency from some of the most wealthiest and powerful business families in the world. We have around 800 years of political stability, sound management of the economy and a protective environment for families. Add to that now a world class finance sector as well as other industry leading capabilities, and Monaco will continue to shine.
 
KEY FIGURES FOR MONACO’S MARKETPLACE:
Number of banking institutions                                                                      30
Number of asset management companies                                                       58
Total of assets managed by the Monegasque Banking and Finance Centre         €127 billion
 
Photos: Monaco Life / Pixabay
 
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