Low operational risks the key to custody outsourcing
02 December 2014 London
Image: Shutterstock
A majority of asset management professionals cited operating risks as the most important thing to consider when outsourcing services to a custodian, according to an informal survey at the Global Custody Forum.
Of the conference attendees, 47.2 percent cited low operational risks as their prime concern, while the second most popular answer was outsourcing operational with 22.2 percent, and low operating costs won 20.8 percent of the vote.
Of the remaining voters, 6.9 percent chose ‘other’ and 2.8 percent said they were not sure.
The poll was taken during a panel discussion about the changing role of the custodian and the changing relationship between asset managers and securities services providers.
Moderator Ken Back, head of business development at BNP Paribas Securities Services, also asked the audience if the digital revolution will disrupt of materially change your relationship with your custodians.
To this, 38 percent answered ‘only in parts’ and the panel were surprised by only 33.8 percent answering yes, and 14.1 percent saying no.
Only 1 percent said the relationship was not relevant, and 12.7 percent said they do not know.
In response to this, panellist Markus Ruetimann, COO of Schroders, said: “None of us really know how it will change the industry, but all of us will have to prepare. It is a change and will impact us somehow.”
Of the conference attendees, 47.2 percent cited low operational risks as their prime concern, while the second most popular answer was outsourcing operational with 22.2 percent, and low operating costs won 20.8 percent of the vote.
Of the remaining voters, 6.9 percent chose ‘other’ and 2.8 percent said they were not sure.
The poll was taken during a panel discussion about the changing role of the custodian and the changing relationship between asset managers and securities services providers.
Moderator Ken Back, head of business development at BNP Paribas Securities Services, also asked the audience if the digital revolution will disrupt of materially change your relationship with your custodians.
To this, 38 percent answered ‘only in parts’ and the panel were surprised by only 33.8 percent answering yes, and 14.1 percent saying no.
Only 1 percent said the relationship was not relevant, and 12.7 percent said they do not know.
In response to this, panellist Markus Ruetimann, COO of Schroders, said: “None of us really know how it will change the industry, but all of us will have to prepare. It is a change and will impact us somehow.”
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