English | Italian

"Custodians self-police to..." (Theme) The lastest total: 100+. you can read with page flip.

show list
related videos
no related videos
Pop theme

David Haines,Prince Harry,Alex Salmond,Alan Pardew,Kanye West,Ian Paisley,Miss America,John Kerry,Billy Horschel,Danny Welbeck

Related theme

financial news

Custodians self-police to avoid the FCA’s magnifying glass

2013-11-21 11:42:28

In the FCA’s 2013/2014 Business Plan, it said: “The custody bank business model… is facing strain”, which could “lead to harm” to consumers, as custodians are forced to “exploit areas of profitability”.Custody banks make money by offering services to pension schemes, hedge funds and other institutional investors, as well as to brokers and banks.

However, over the years, the high-volume, low-margin safekeeping and custody services for which these trust banks are known have attracted fewer and fewer column inches – largely because they are making less money.

Instead, there has been a rise in value-added ancillary services – such as securities lending, foreign exchange trading and collateral management – that reap millions of dollars for custodians every year.

With low interest rates and regulatory costs putting “strain” on the custody models, the FCA

worries that charges for these ancillary services, which it said contribute up to 40% of custodians’ revenues, are being inflated.

Custody banks, however, said the industry had already made the move to self-govern, stamping out potentially dishonest or detrimental activity long ago. Speaking to Financial News, one custody banker said: “This should have been done in 2008. The industry has already policed itself.”

Nevertheless, the FCA investigation is likely to have raised doubts in the minds of custody banks’ clients. The industry waited eight months for the regulator to announce its findings – which it did, in a speech by FCA director of supervision Clive Adamson at the regulator’s Asset Management Conference in October.

He said: “[The FCA] concluded that standards and transparency across the industry have improved over the past few years… custody banks have responded by improving their service levels.”

He added that clients had an important role to play themselves, saying: “You need to continue to hold the custody banks to account to ensure you are getting the services expected at the correct price, just as you would do for any third-party provider.”

This investigation into ancillary services was not the first undertaken by the watchdog. In December 2012 the FCA’s predecessor, the Financial Services Authority, sent out a “Dear CEO” letter to 125 asset managers, asking that they consider their outsourcing arrangements with external providers – such as custody banks. The regulator encouraged the industry to look at its reliance on and arrangements with outsourcing providers and to think about what would happen in the event that one of these entities should fail.

In response, a group of custody banks and asset managers, along with the Investment Management Association, clubbed together to square up to the regulator’s challenge, forming the Outsourcing Working Group.

Despite the attention, there has been little for the industry to worry about as its ability to self-police appears to have been largely successful.

The FCA said in a paper released earlier this month that it had been “encouraged to see that asset managers in conjunction with their service providers are able to make improvements in the absence of regulatory intervention”.

And to that point, at the FCA conference, IMA chief executive Daniel Godfrey said the industry’s vision is to “reach a point where [it regards] the regulators as almost irrelevant”.

But with regulatory scrutiny as intense as it has ever been, industry practitioners are aware that this is unlikely to be the end of the road.

The FCA declined to comment beyond referring Financial News to Adamson’s speech.

--This article originally appeared in the print edition of Financial News dated November 18, 2013

View Original Article: efinancialnews.com
Disclaimer statement: The point of this article or rights belongs to the authors and publishers. We take no responsibility for the content of this article and legitimacy.
Do you have any questions about this article, please contact the news source efinancialnews.com.
Or contact us


Write an article relevant this topic share on facebook share on twitter share on google plus share on oknews share on linkedin share on digg share on reddit share on newsvine share on pinterest share on netlog share on tumblr share on delicious send email print add to favorite

[{"b":"b","i":"1192310","t":"Eminem sues National Party over copyright breach - Yahoo Finance New Zealand","a":1},{"b":"b","i":"1192297","t":"OSEA2014: APAC to Account for 70% of Global Oil Demand by 2020 - Yahoo Finance New Zealand","a":2},{"b":"b","i":"1192298","t":"Small business wary on economic prospects - Yahoo7 Finance Australia","a":3},{"b":"b","i":"1192293","t":"Seniors Money would sell 9.4% Heartland stake when escrow lifts - Yahoo Finance New Zealand","a":4},{"b":"b","i":"1192232","t":"Asian shares on edge as investors brace for Fed - Yahoo Finance UK","a":5},{"b":"b","i":"1192233","t":"SunPower Achieves Production Milestone, Manufacturing its One-Billionth Solar Cell - Yahoo Finance Canada","a":6},{"b":"b","i":"1192244","t":"Australia shares dip on weak Wall Street, resources climb - Yahoo Finance UK","a":7},{"b":"b","i":"1192134","t":"Lawyer questions city financing of Depot Square plan","a":8},{"b":"e","i":"501217","t":"Biggest U.S. pension just gave hedge funds the boot - Fortune","a":9},{"b":"b","i":"1192000","t":"Soccer-Lerner farewell galvanises Villa talent - Yahoo Finance Canada","a":10},{"b":"b","i":"1191969","t":"\u2018Childcare help and freeze on business rates\u2019 \u2013 Chamber backs \u201cbold\u201d new manifesto","a":11},{"b":"b","i":"1191971","t":"CORRECTION - Bernstein Litowitz Berger & Grossmann LLP - Yahoo Finance UK","a":12},{"b":"b","i":"1191839","t":"SanDisk Announces ULLtraDIMM Design Win with Huawei - Yahoo Finance New Zealand","a":13},{"b":"b","i":"1191767","t":"New Artesyn Embedded Technologies Server Blade Optimized for Network Function Virtualization and Deep Packet Inspection Applications - Yahoo Finance UK","a":14},{"b":"b","i":"1191768","t":"MEDTEC China 2014: Seven Highlights Not to Miss! - Yahoo Finance Canada","a":15},{"b":"b","i":"1191675","t":"Opposition, colleagues rebut Omar’s ‘helplessness’ claim","a":16},{"b":"b","i":"1191628","t":"ChannelAdvisor Announces 2014 Autumn Release - Yahoo7 Finance Australia","a":17},{"b":"d","i":"853026","t":"Brazil announces new tax breaks for business","a":18},{"b":"b","i":"1191551","t":"Lufthansa pilots call off strike: union - Yahoo Finance New Zealand","a":19},{"b":"e","i":"501013","t":"Urban Outfitters' Kent State sweatshirt and 7 other controversial clothes - Fortune","a":20},{"b":"d","i":"852606","t":"J Trust set to buy Bank Mutiara","a":21},{"b":"d","i":"852613","t":"Indonesia's president-elect Widodo looks to technocrats for cabinet","a":22},{"b":"b","i":"1191537","t":"Fitch Rates Coca-Cola's $2B Notes Issuance 'A+' - Yahoo Finance UK","a":23},{"b":"b","i":"1191515","t":"TeamHealth Names Oliver Rogers Executive Vice President and Chief Operating Officer - Yahoo Finance Canada","a":24},{"b":"b","i":"1191467","t":"Amarin Plunges after the FDA Denies Vascepa SPA Appeal - Yahoo Finance Canada","a":25},{"b":"b","i":"1191461","t":"Greenhouse Partners Hosts \u201cGetting Your Brand Right from the Start\u201d Session for Denver Startup Week 2014 - Yahoo Finance Canada","a":26},{"b":"b","i":"1191439","t":"Dialysis Products and Services Market (Hemodialysis Products, Peritoneal Dialysis Products; In-center Dialysis Services and Home Dialysis Services) - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2014 - 2020 - Yahoo Finance Cana","a":27},{"b":"b","i":"1191444","t":"Will Janus Capital's Product Diversification Efforts Pay Off? - Yahoo Finance Canada","a":28},{"b":"b","i":"1191343","t":"Scotland\u2019s Hamlet Moment: To Leave or Not to Leave? That is the Question - Yahoo Finance Canada","a":29},{"b":"b","i":"1191349","t":"EURUSD Short Bias at Risk Ahead of FOMC- 1.29 Bullish Invalidation - Yahoo Finance Canada","a":30},{"b":"b","i":"1191351","t":"Brent hits 26-month low under $97 on weak China data - Yahoo India Finance","a":31},{"b":"b","i":"1191352","t":"Research and Markets: Global Recreational Boating Industry Analysis and Forecast: 2014-2019 - Yahoo Finance Canada","a":32},{"b":"b","i":"1191353","t":"Teva Canada Announces the Launch of (Pr)Teva-Ezetimibe, a Generic of (Pr)Ezetrol\u00ae - Yahoo Finance Canada","a":33},{"b":"d","i":"852128","t":"Widodo to Have Technocrats Run Half of Indonesia Cabinet","a":34},{"b":"b","i":"1191285","t":"Internet of Things (IoT)--Challenges and Impediments - Yahoo Finance Canada","a":35},{"b":"b","i":"1191295","t":"The Telecommunication Market in Central Africa: Key Fixed and Mobile Market Indicators - Yahoo Finance Canada","a":36},{"b":"e","i":"500761","t":"How Silicon Valley sees Alibaba - Fortune","a":37},{"b":"e","i":"500614","t":"The 5 Best Places to Hide Emergency Cash at Home","a":38},{"b":"d","i":"851729","t":"Russian 2015 Anti-Crisis Reserve to Include 100 Bln. Rub. Saved in 2014: Finance Ministry","a":39},{"b":"d","i":"851730","t":"Russia to Save 309 Bln. Rub. in 2025 by Canceling Funded Pensions: Finance Ministry","a":40},{"b":"e","i":"500543","t":"Microsoft buys Minecraft developer for $2.5 billion - Fortune","a":41},{"b":"e","i":"500544","t":"Is pumpkin spice the ultimate aphrodisiac? - Fortune","a":42},{"b":"d","i":"851577","t":"Missing tender docs tripping up A-G","a":43},{"b":"d","i":"851411","t":"Wall Street Filipino exec returns to first love\u2013music","a":44},{"b":"d","i":"851383","t":"OECD slashes growth forecasts, urges aggressive ECB action","a":45},{"b":"d","i":"851282","t":"Proton Launches May Compete on Price With US Falcons","a":46},{"b":"d","i":"851275","t":"Reuters: Russia to create anti-crisis fund to aid sanctions-hit companies","a":47},{"b":"c","i":"1810351","t":"South Sudan Mulls Exchange-Rate Unity Once Security Improves","a":48},{"b":"e","i":"500442","t":"Inside Northwestern Kellogg B-school's ambitious growth plan - Fortune","a":49},{"b":"d","i":"851017","t":"China 3-year and 5-year local govt bonds auctioned at 4.14, 4.15pc","a":50},{"b":"c","i":"1810080","t":"TDC Agrees to Buy Norway Cable Provider Get AS for $2.2 Billion","a":51},{"b":"d","i":"850664","t":"Pier Padoan on Italy's Banking Industry, ECB Review","a":52},{"b":"d","i":"850564","t":"Russia creates emergency fund to deal with Western sanctions","a":53},{"b":"d","i":"850567","t":"Russia to create anti-crisis fund to aid sanctions-hit companies","a":54},{"b":"e","i":"500377","t":"Is Sinopec's Retail Sale A Big Deal?","a":55},{"b":"c","i":"1809813","t":"European Finance Ministers Support Investment Program","a":56},{"b":"c","i":"1809781","t":"Russia predicts revenue shortfall through 2017","a":57},{"b":"c","i":"1809606","t":"Peru's Humala replacing finance minister with key adviser","a":58},{"b":"c","i":"1809588","t":"Draghi Prods Euro Area to Ready Ground for Economic Boost","a":59},{"b":"d","i":"850310","t":"Scottish referendum: Sheridan dismisses oil resource fears","a":60},{"b":"e","i":"500250","t":"Alibaba\u2019s IPO, the Fed and Scotland \u2014 5 things to watch for this week - Fortune","a":61},{"b":"d","i":"849707","t":"TCS opens first all-women BPO unit in Saudi Arabia","a":62},{"b":"d","i":"849565","t":"Kuwait KNPC names NBK finance advisor for $12bn refinery upgrade","a":63},{"b":"a","i":"1235910","t":"Canadian Psychiatrists Welcome New Association President Dr. Padraic Carr - Yahoo Finance Canada","a":64},{"b":"d","i":"849452","t":"CMC Insurance Limited Establishes a Presence in Europe","a":65},{"b":"e","i":"500160","t":"The game isn't over yet for Nintendo's Wii U - Fortune","a":66},{"b":"a","i":"1235749","t":"Deutsche Telekom says finds no evidence of NSA, GCHQ surveillance - Yahoo Finance UK","a":67},{"b":"a","i":"1235525","t":"UWI fall-out","a":68},{"b":"a","i":"1235475","t":"Featured Brokers","a":69},{"b":"a","i":"1235456","t":"Russia Predicts Revenue Shortfall Through 2017","a":70},{"b":"a","i":"1235468","t":"Mining companies turn to smaller lenders as banks move to cut debt","a":71},{"b":"a","i":"1235425","t":"North America Oil & Gas Analytics Market to See High Traction to 2019 Says New Research Report Available at RnRMarketResearch.com - Yahoo Finance Canada","a":72},{"b":"d","i":"849341","t":"Russian Ministry of Finance Closely Follows Oil Prices, Readies Measures in Case They Fall","a":73},{"b":"d","i":"849344","t":"Finance Minister: No Cash Injections Planned to Russian Reserve Fund in 2014-2015","a":74},{"b":"d","i":"849345","t":"Russian Ministry of Finance Expects Reaching Deficit-Free Budget in 2014","a":75},{"b":"a","i":"1235325","t":"Psychiatrists Recognize Outstanding Contributions to Mental Health at their Annual Conference - Yahoo Finance Canada","a":76},{"b":"f","i":"1061129","t":"Britain, France get top jobs from EU's Juncker","a":77},{"b":"a","i":"1235281","t":"Hematoma Therapeutics Clinical Trials Market Overview on Companies, Top Institutes & Clinical Profiles to 2014 - Yahoo Finance Canada","a":78},{"b":"a","i":"1235282","t":"Calgary Chiropractor Declares September Teacher Appreciation Month - Yahoo Finance New Zealand","a":79},{"b":"e","i":"500084","t":"Fortune 5: The biggest organized crime groups in the world - Fortune","a":80},{"b":"a","i":"1235158","t":"EU Seeks Billions Of Euros To Revive Economy, Plans To Spur Growth","a":81},{"b":"d","i":"849195","t":"Greg Abbott says higher education is a top priority in his campaign for governor","a":82},{"b":"c","i":"1808461","t":"HSBC settles mortgage case with US regulators for $550m","a":83},{"b":"c","i":"1808462","t":"County by county news for Sunday","a":84},{"b":"c","i":"1808328","t":"EU finance ministers seek climate of investment","a":85},{"b":"c","i":"1808222","t":"Board of Portuguese lender Novo Banco in shock exit","a":86},{"b":"a","i":"1234321","t":"Verimatrix Extends Collaboration With Bouygues Telecom for Enhanced Multi-Screen Revenue Security - Yahoo Finance UK","a":87},{"b":"a","i":"1234327","t":"EU finance ministers call for more investments to stimulate growth","a":88},{"b":"a","i":"1234282","t":"Egypt to ask IMF for first 'Article IV' consultations in 3 years - Zawya","a":89},{"b":"a","i":"1234171","t":"UPDATE 2-Cycling-Contador poised for Vuelta glory after stage win - Yahoo Finance Canada","a":90},{"b":"c","i":"1808001","t":"Show us the money: EU seeks billions of euros to revive economy","a":91},{"b":"a","i":"1234084","t":"Show us the money: EU seeks billions of euros to revive economy - Yahoo Finance Canada","a":92},{"b":"a","i":"1234085","t":"EU seeks billions of euros to revive economy","a":93},{"b":"a","i":"1234066","t":"Soccer-US championship results and standings - Yahoo Finance Canada","a":94},{"b":"a","i":"1234003","t":"Vote yes on state water bond","a":95},{"b":"a","i":"1233793","t":"British Government Responsible for all Debt After Scottish Independence \u2013 UK Official","a":96},{"b":"a","i":"1233796","t":"Jammu and Kashmir floods ministers urge Narendra Modi to declare floods national calamity","a":97},{"b":"a","i":"1233802","t":"AASTOCKS Financial News - Popular News","a":98},{"b":"d","i":"847673","t":"Why I hate standardized tests: A teacher's take on how to save public education","a":99},{"b":"d","i":"847652","t":"EU ministers promote 'investment' but options unclear","a":100}]


"Custodians self-police to..." IN THE COMMUNITY!



        No results related
      Share one Sentence

      Manage my submission

      Eminem sues National Party over copyright breach - Yahoo Finance New Zealand