Credit Suisse Group today announced plans to absorb its brokerage arm, Credit Suisse First Boston (CSFB), and to spin-off several other businesses, as part of a fundamental structural overhaul.

CSFB has operations in Toronto and Montreal. The firm recently agreed to pay $1.5 million to settle charges for off market trading of 9 million shares of BCE.

Credit Suisse said it plans to fully integrate its banking units over the next 18 months to two years and to create distinct lines of business dedicated to private clients, corporate and investment banking clients, and asset management. It will also aim to float its insurance group, Winterthur. The Swiss banking giant bank also upped its dividend.

The firm explained the plan to absorb CSFB saying it’s doing so, “In order to better address client needs in a rapidly changing market environment, as well as making more efficient use of its resources.” Within the united firm, private client businesses and wholesale (corporate and investment banking) businesses will be bundled in two distinct lines. A third business line will comprise all of Credit Suisse Group’s asset management services. “The new integrated bank will operate more efficiently and provide enhanced advisory services and products with a sharper focus on client needs, paving the way for increased revenues and considerable cost savings,” it says.

Credit Suisse will create a unified global proprietary trading group under a single management structure across equities and fixed income.

CSFB intends to spin out its Merchant Banking Partners business, its Credit Opportunities Fund and the Diversified Credit Strategies Fund, while maintaining a significant financial interest in — and a strategic relationship with — these funds.

Credit Suisse Asset Management will focus on improving its investment performance and will expand global product offerings while maintaining regional distribution, as well as streamlining its businesses in the US and Asia. The Private Client Services business will better exploit the attractiveness of the global product platform and build upon its leading position in volatility management.

With regard to Winterthur, Credit Suisse Group believes the market is not yet prepared to pay an adequate price for what it believes is the full value of the business. The firm says it is convinced that the best option for Winterthur is for it to move forward with its strategy of profitable growth, with a capital market flotation coming later.