NeMa: sub-custodians will survive
11 June 2014 Vienna
Image: Shutterstock
Sub-custodians will live to see another decade despite upcoming regulations, according to a panel of experts at the NeMa conference in Vienna.
The panellists concurred with the moderator, who claimed that banks' relationships with sub-custodians are rarely affected by regulations such as the Alternative Investment Fund Managers Directive (AIFMD).
According to the panel, service providers are not forced out of the market by regulations, despite due diligence practices having to be adapted. On the contrary, the moderator claimed that new regulations have breathed life into an industry that was not as appealing 20 years ago.
Audience surveys during the panel concluded that the increased costs associated with regulatory changes should be paid by investors themselves, while the contingent of network managers in the crowd, rather optimistically, declared that fees for sub-custodians would decrease over the next five years.
The panel closed by reiterating that sub-custodians would continue to be in demand, due to banks appreciating the local expertise and connections that they provide.
The panellists concurred with the moderator, who claimed that banks' relationships with sub-custodians are rarely affected by regulations such as the Alternative Investment Fund Managers Directive (AIFMD).
According to the panel, service providers are not forced out of the market by regulations, despite due diligence practices having to be adapted. On the contrary, the moderator claimed that new regulations have breathed life into an industry that was not as appealing 20 years ago.
Audience surveys during the panel concluded that the increased costs associated with regulatory changes should be paid by investors themselves, while the contingent of network managers in the crowd, rather optimistically, declared that fees for sub-custodians would decrease over the next five years.
The panel closed by reiterating that sub-custodians would continue to be in demand, due to banks appreciating the local expertise and connections that they provide.
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