How to choose a sub-custodian

In the latest of our ‘how to…’ series, Melanie White examines how attitudes are changing when global custodians partner with sub-custodians

In the wake of the global financial crisis, custodians have been facing a challenging environment in which to do business. Pressure from a shifting regulatory environment and market efficiency initiatives such as Target2-Securities are seeing business opportunities shrink. ­Additionally, as asset managers seek to re-evaluate their existing service relationships, asset safety and the mitigation of counterparty credit risk have become litmus tests in determining the value and trust the custodians