Sub Custodian Site Diligence
- 01:12
Understand the due diligence performed by global custodians on their sub-custodians
Downloads
No associated resources to download.
Transcript
So as a global custodian, my safekeeping services can only ever be as good as those services offered to me by my sub custodians. So with this in mind, let's just run through again what is important regarding the selection and monitoring of my sub custodians. It's imperative that suitable providers are identified. This will be done through a full tender process as well as onsite meetings. The evaluation will include things like financial strength, quality of service, the team of people, and the succession plan within that organization. Their commitment to the custody business I don't want to select somebody who's in custody at the moment and then exit the custody market in a year's time as I have to go through the whole process again, I'll be looking for custodians that have been identified as the best in that local market. I'll be looking for organizations that have been approved as defined by the FCA here in the UK, and I would constantly be reassessing that my selection is still the best to provide me that service in that particular local, outside of the sub custodian. Also, we're doing reviews on the local CSDs, the central security deposit depositories, and stock exchanges to make sure that they're up to date with regulation and make sure that their processes have continued to be as robust as possible.