The European Central Bank and German market watchdog Bafin will likely reject the appointment of Jürg Zeltner as a supervisory board member of Deutsche Bank AG because of a possible conflict of interest, people with knowledge of the matter told the Financial Times.
The regulators are not convinced that Zeltner would be completely independent since he also serves as CEO of Luxembourg-based KBL European Private Bankers SA, which is a direct competitor of Deutsche Bank in wealth management, three sources said. A senior regulatory official said merely recusing himself from certain decisions would not be sufficient for Zeltner to serve both institutions.
A source told the FT that it is an either-or situation for Zeltner, while another said he would likely keep the KBL post if made to choose. Zeltner also reportedly has a "significant co-investment" in KBL.
Deutsche Bank is said to have informed regulators of the appointment only days before it was announced and there were no discussions about the issue or how to resolve it. Zeltner was nominated to the board in August to represent Qatar's royal family, which owns 6.1% of Deutsche Bank and also controls KBL through a private investment vehicle.
In September, regulators were said to have launched a probe into the appointment over the matter.
