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ASSETSERVICINGTIMES 18.04.2012 WEDNESDAY AST assetservicingtimes.com CONTENTS Regional profile We examine the custody market in Cen- tral and Eastern Europe. page8 Jersey focus AST assembled a panel of experts to look at how Jersey plans to keep its sta- tus at the top of the market page12 Interview: Sebastien Chaker London pension schemes set to Calastone’s Luxembourg head explains the issues and solution surrounding au- tomated messaging within the fund dis- join forces in cost cutting move tribution market LONDON 13.04.2012 page16 London’s 32 councils are in talks to establish a Ray Bloom, head of LGPS at Northern Trust said: “It is Regulation focus pooled pension fund, loosely based on the Ontario absolutely the time to push ahead and investigate new Linedata’s Noreen Crowe examines the Municipal Employers Retirement System’s infra- methods such as the potential benefits of being part of impact that FATCA will have on firms structure vehicle ‘Borealis’. If the merging of the 34 a Common Investment Fund, which allows a number of both inside and outside the US schemes takes place, a new entity could see £30 bil- registered pension schemes to pool their investments. lion of assets available. Under this arrangement the pension schemes would not page22 need to merge, but could continue to operate separately Advocates of the pooled fund state that by cutting and gain the many benefits of this arrangement includ- Asian fund administration Our panel of experts debate the latest administration costs of running separate schemes, a ing improved governance and reduced costs. developments in the Asian funds market, combined fund could direct as much as 7.5 per cent and discuss how the market will grow of assets, or £2.25 billion, into local projects. “We are also working closely with the UK Treasury to facilitate the set-up and operation of the new UK tax page24 One concern, most particularly for custodians, is transparent fund (TTF) pooled investment vehicle. whether one company or several will act as custo- dian for the £30 billion of assets, and how that deci- “Through this, LGPSs should be able to generate actual People moves sion will be made. Currently Northern Trust and State savings, through reduced investment management fees Find out the latest hires, and who is Street provide the lion’s share of custody for pension and provide smaller schemes with the opportunity for getting promoted within the industry. funds in the boroughs, with BNY Mellon, J.P. Mor- enhanced diversification and the ability to gain access page28 gan, HSBC and BNP Paribas also offering services. to a broader range of asset classes.”
Societe Generale wins Metropole Gestion mandate Northern Trust welcomes UK tax law
Societe Generale Securities Services in Italy (SGSS S.p.A.) has been appoint- Northern Trust’s custody and fund administration services are ready for the ed by Metropole Gestion to act as its local transfer agent in Italy, providing it with launch of the new UK authorised tax transparent fund (TTF) vehicle, due to paying agent and investor relations management services. be effective around August 2012. readmore p3 readmore p3 Ten markets, ten cultures, one bank. Fund eFFiciency. unLOcKed.
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Societe Generale wins Metropole Gestion mandate Continued from page 1
SGSS in Italy offers securities services includ- ing clearing, custody and trustee services, fund administration, liquidity management and transfer agent services.
Metropole Gestion is an independent asset management company based in Paris and spe- cialised in stock-picking (European equities, euro zone and Japanese equities) and bond- picking (euro zone bonds and convertibles).
Northern Trust welcomes UK tax law Continued from page 1
First announced in the 2010 UK Budget, the UK tax transparent fund will enable fund managers and institutional investors to pool their assets to achieve cost and administrative efficiencies through withholding tax treaties that exist be- tween countries in which investors are based, and those in which they invest.
It is being established to ensure the UK can compete with fund jurisdictions already offer- ing tax transparent fund structures, such as Ireland, Luxembourg and The Netherlands, and becomes the location of choice for master feeder structures under UCITS IV. of 188 per cent, and net income of $461,000 for After the unit was formed by the acquisition of Om- “In order for the master-feeder provisions in the quarter ended 31 December 2011. nium LLC in July 2011, new Northern Trust mandates UCITS IV to be attractive to investors on a include six new clients in the Asia-Pacific region. cross-border basis, the master fund needs to Cade Thompson, chief executive officer stated: be a tax-transparent vehicle,” said Aaron Overy, “The past two years have been a period of tran- Julius Wang, MD of Samena Asia Managers business development, asset pooling and re- sition as we shifted our core business from a for Samena Capital, said of his firm’s admin- tirement solutions at Northern Trust. consumer financial services company to a dis- istrator: “The quality of the overall team and tressed asset services company. A large part of people in Hong Kong gave us confidence that “We believe the introduction of a tax transparent the fourth quarter success is due to growth in they could deliver top service levels for a wide fund in the UK would become the natural choice the distressed asset verticals, primarily asset range of investment strategies. We have not for asset managers already operating large UK management and portfolio advisory services, been disappointed.” fund ranges as well as support UK pension indicating the completion of that transition.” funds wishing to pool all their assets in the UK, Northern Trust now has more than $170 billion and helping life insurance companies mitigate Halo Companies is a publicly-traded, nation- in hedge fund assets under administration. the effects of the Solvency II directive.” wide distressed asset services company, pro- viding technology-driven asset management, “In addition, we would expect interest from Eu- CIBC Mellon wins Bloom funds portfolio analytics, acquisition, repositioning rope, Asia and US-based asset managers look- and liquidation strategies for the private invest- asset servicing mandate ing to operate a central platform in the UK for ment and mortgage servicing industry. their global fund distribution needs,” he added. CIBC Mellon will provide asset servicing solutions for the Bloom Income & Growth Canadian Fund, and the upcoming Bloom Select Income Fund. Good fortune for Halo Companies Northern Trust fund adminis- tration secures 22 clients CIBC Mellon will provide Bloom with custody Halo Companies, which provides services for dis- services, securities lending, accounting servic- tressed assets, announced profitable fourth quar- Northern Trust’s hedge fund administration division es, and real-time access to investment informa- ter results, with revenue of $3.2 million, an increase has secured 22 client wins in the last seven months. tion via CIBC Mellon’s Workbench platform.
3 www.assetservicingtimes.com NewsInBrief
“We selected CIBC Mellon as our asset servicing provider based on the impressive dedication to client service permeating the company’s culture,” said Paul Bloom, president of Bloom Investment Counsel, Inc. “We have worked with many custo- dians and have found CIBC Mellon to be the best at allowing us to focus on our goals.”
CIBC Mellon now provides asset servicing for more $370 million of assets managed by Bloom.
NYSE Liffe US to launch new repo futures
NYSE Euronext will launch repo futures market trading on 16 July, if it passes regulatory approval.
Seeking to compete with CME, which is aim- ing to own a futures exchange in London, NYSE will launch its repo futures trading through its NYSE Liffe US that comply with the Depository Trust and Clearing Corporation’s (DTCC) trade- mark – GCF Repo Index.
With Libor, a diurnal fixing of interbank overnight dollar lending rates, under scrutiny for manipu- lation, and benchmark rates offered by Federal Reserve losing lustre following the transaction tax introduced by Federal Deposit Insurance Corporation (FDIC), NYSE is optimistic about exploring the $400 billion GCF repo market.
Thomas Callahan, chief executive of NYSE Liffe US, said at an investor meeting earlier this month: “The two things that market participants German institutional investors willing The SICAV is managed by Contassur Assist- would usually look at in terms of a short-term ance Conseil, a subsidiary of Contassur, the life benchmark, fed funds and Libor, are both in to pay more for extra services insurance company that provides group insur- their own way broken right now,” he said. “The German institutional investors are willing to pay ance for the GDF Suez Group and companies in market needs a new benchmark and we think more for services above and beyond that of a the Belgian gas and electricity sector. that this could be it.” standard custodian, according to BNY Mellon. The new partnership strengthens the links be- Para Advisors expands onshore rela- The survey, conducted by German consultancy tween Contassur and CACEIS, which already firms itechx Consulting and FAROS Consult- provides the safekeeping of the insurance com- tionship with Maples Fund Services ing, analysed investors’ latest demands for new pany’s assets in the form of mandates. products and services. Para Advisors, a hedge fund manager with ap- proximately US$200 million of assets under Oliver Draeger, senior investment consultant at Kaufman Rossin Fund Services management, has expanded its relationship FAROS, said: “ We can answer the initial ques- launches in Texas with Maples Fund Services to include adminis- tion - are depotbanks at a ‘dead end’ - with a tration for the firm’s onshore funds. definite ‘no’.” Kaufman Rossin Fund Services (KRFS) will open an office in Dallas in order to focus on -ad Maples Fund Services has served as adminis- According to the survey, institutional investors ministration and relationship management for trator for Para’s offshore fund since early 2010, are willing to pay separately for services such hedge funds, commodity pools, private equity but Para had previously handled administration as transaction cost analysis, performance man- funds and family offices. for its US onshore funds internally. MaplesFS agement and risk measurement, but custodi- was awarded the onshore business to help ans are not taking full advantage of available Formerly vice president for Jefferies & Co.’s Para stay ahead of growing industry needs for opportunities to sell such new services on a prime brokerage division in Dallas, James Davis more independence and transparency. stand-alone basis. will head the new office.
“The expansion is a testament to our value of “Better serving the needs of our clients located independence, client excellence, customised CACEIS new custodian for in Texas and the Southwest is the primary reason approach, and our ability to service both on- Luxembourg SICAV Esperides for our expansion,” said Jorge de Cardenas, co- shore and offshore funds,” Toni Pinkerton, glo- founder and director of KRFS. “Our physical pres- bal head of Maples Fund Services said. Luxembourg SICAV Esperides has selected ence, along with the experience and leadership of CACEIS as the fund’s custodian, depositary James Davis, reinforces our commitment to serve Para launched its flagship onshore fund in 1991. bank and its administrative agent. this leading alternative investment community.” 4 www.assetservicingtimes.com NewsInBrief Until you have the competitive edge you deserve.
It’s not our leading-edge technology platforms that will give you the edge.
(Although obviously they’ll help.)
Nor is it our fifty years of experience.
(Although that too is pretty important.)
So is it our extensive expertise in asset servicing?
No. It’s none of these things.
It’s one thing.
Our commitment to relationships.
At UBS, we listen.
And we listen hard.
You may manage traditional or alternative investments.
Your needs may be simple or complex.
But no one will work harder, shoulder to shoulder, to find a solution.
No one will give you a more competitive edge.
Enough of our words. We want to hear yours.
E-mail us at fundservices@ubs.com or go to www.ubs.com/fundservices
Top rated 2009–2011 in Global Custodian Hedge Fund Administration Survey We will not rest
© UBS 2012. All rights reserved. NewsInBrief
BNP Paribas to provide hedge fund fer agent in Italy, providing it with paying agent The enlarged Vistra Netherlands company will and investor relations management services. be led by managing director Sjaak ten Hove administration for Anchor Risk Advisors and executive directors, Tako van Ginkel and Created in 1991, Financiere de l’Echiquier man- Jack Willems. BNP Paribas will provide Anchor Risk Advisors ages a small range of mutual funds invested in hedge fund administration services for its latest the main equities and bonds markets for private insurance-linked investment strategy. LCH.Clearnet to sell majority stake and professional investors. to London Stock Exchange Anchor Risk Advisors, an investment manager Vistra looks to Netherlands with focused on the insurance-linked securities and Shareholders of LCH.Clearnet supported its catastrophe risk investment sector, are con- acquisition of FTC Trust plan to sell a majority stake to London Stock tinuing their relationship with BNP Paribas who Exchange Group for €463 million. have provided them with a range of fund ad- Vistra has expanded into the Netherlands ministration services over the years. through the acquisition of FTC Trust, bringing LCH.Clearnet said 94.4 per cent of votes cast Vistra staff numbers in the region to 60. by investors at a meeting in London today were Andrew Dougherty, managing director and head in favor of the merger, with LSE reporting a 99.9 of alternative & institutional solutions at BNP FTC Trust provides services including company per cent agreement to the deal. Paribas, said: “Our service model means that formation, management and domiciliation, and Anchor Risk Advisors has direct access to the corporate services. It is expected to be re- The clearing house attracted interest from operations and accounting specialists responsi- branded under the Vistra umbrella during the Nasdaq OMX Group (NDAQ) and NYSE Euron- ble for administering its funds at BNP Paribas.” second quarter of this year. ext (NYX) before agreeing to the LSE bid last Director of FTC Trust Jack Willems said: “Cli- month. The firms intend to complete the trans- Another mandate for Italian SocGen ents will be able to benefit greatly from the action by the fourth quarter. broader range of services and on the ground Securities Services presence in other key jurisdictions that Vistra NYSE Euronext, the owner of the New York can offer and at the same time, will find that Stock Exchange, has a stake of about 9.1 per Societe Generale Securities Services in Italy they are still dealing with their existing contacts cent in LCH.Clearnet and plans to stop using (SGSS) has been appointed by Financiere de in the new enlarged company, which will help the venue to clear European securities and de- l’Echiquier to act as an additional local trans- ensure business continuity.” rivatives in 2013.
Handelsbanken Custody Services
Stability in an evolving environment
Find out more at our website: www.handelsbanken.com/custodyservices
You can also contact our Relationship Management Department, phone: +46 8 701 29 88 or e-mail: [email protected]
6 www.assetservicingtimes.com NewsInBrief
Bottom line: Your securities services expert 2in Central and Eastern Europe @ Our network is available for you in Central and Eastern Europe for your securities services business. We bring you in-depth local experience and award winning international expertise. ING is your partner in Bulgaria, Czech Republic, Hungary, Poland, Romania, Russia, Slovak Republic and Ukraine. For more information call Lilla Juranyi, Global Head of Investor Services on +31 20 563 6435 or e-mail: [email protected].
www.ingcommercialbanking.com
ING Commercial Banking is a marketing name of ING Bank N.V., registered by the Netherlands Authority for the Financial Markets (AFM). Copyright ING Commercial Banking (2010). CountryFocus Central and Eastern Europe It is impossible to stereotype - or even define - the CEE region, but the financial crisis has led to leaner, meaner operations
GEORGINA LAVERS REPORTS
A blanket statement about custody in central tional Monetary Fund and the European Union the regional level, CEE growth appears unlike- and Eastern Europe is no mean feat, con- arguably played an important role in protecting ly to reach pre-crisis levels in the foreseeable sidering the intensely heterogenic nature of the liquidity of CEE and CIS banking markets future, and will fall well below growth rates of the region. Custody provision in Serbia and and in helping national governments to devise other emerging markets. At the country level, Montenegro is almost non-existent, while just policy decisions that stabilised the economies the CEE states display wide variations in GDP across the border, Hungary is recording aver- of the region. growth trajectories that demonstrate the region’s age daily trading turnover of €42.8 million: a increasing diversity.” veritable feast for custodian banks. Technol- However, the recovery that was expected has ogy in Ukraine still, as Matthew Grabois from not materialised. At the beginning of 2011, Katalin Bóta, deputy regional head of Securities BNP Paribas admits, “has got some roadwork the European Bank for Reconstruction and Services for Austria & CEE Region at Deutsche to go”, while IT solutions in Austria are remark- Development (EBDR) predicted a growth rate Bank, comments: “There was a slight window ably mature. So how to characterise a region of 4.3 per cent for the 29 countries in Central when the Arab Spring started; because of risk that consistently resists definition? and Eastern Europe over the year. However, considerations, they thought the focus may it now expects the combined gross domestic come back to Europe. But that was only a very The CEE region’s back story over the last 10 product of central and eastern Europe to grow slight chance. However, things are cyclical: Asia years has been notably torrid. Significantly by just 1.4 per cent, down from 1.7 per cent in may have the upper hand now, but everything impacted during the 2008 crisis, international October 2011. is circular.” banks and their subsidiaries lent a helping hand to all countries in the region as they prepared The World Bank’s October 2009 report on the Within the region, there seems to be a mixed to stand on their own two feet. The Vienna Ini- CEE countries, ‘From Stabilisation to Recov- outlook. The EBRD raised growth forecasts for tiative was launched in January 2009 to align ery’, seems accurate in its prediction of growth Latvia, Poland and the Slovak Republic, and the activities of leading private sector financial to be: “feeble and uneven,” and a report by RSM left those for Estonia and Lithuania unchanged. institutions and support offered by the Interna- International was similarly gloomy, stating: “At Yet Hungary and Slovenia were forecast to 8 CountryFocus CountryFocus
contract by 1.5 and 1.1 per cent respectively, pearing and players coming. Along general lines the Baltics. Looking at the greater CEE, ING, with the ERBD stating that governmental do- the main competitors for Austria, Poland, Czech Unicredit, Citi, Deutsche and Raiffeisen have mestic policy mistakes in Hungary had un- Hungary and Turkey are definitely UniCredit, strong positions. The two flagship markets of nerved investors. Citibank, and I would say ING but to a lesser CEE region are Russia and Poland, and also and lesser extent. I think its focus is different, Hungary and the Czech Republic.” The Russian and Ukraine economies are still because if I go down to Russia, Romania, Bul- expected to grow by 4.2 per cent and 2.5 per garia, historically ING is very strong. If you look Global head of custody at ING Commercial cent respectively in 2012, with the EBRD stat- at Poland, Czech Republic or Hungary, I would Banking Securities Services Lilla Juranyi ing that countries further to the east of the euro say it is prominently Citibank, Unicredit and defines her company as a traditional custo- zone, which are less reliant on it as an export Deutsche, and if you go to Russia, it’s ING. But dian, but agrees with Katalin that the market market and a source of credit, will suffer to a we must not forget about the local banks. DTP is changing: lesser extent. is very strong. It is very well-capitalised, and it has the liquidity.” “Currently the main traditional custodians in the Against this dynamic background, custodians CEE are ING, Citibank, UniCredit, Deutsche are continually looking at the growth of coun- The need for splitting the region into compo- Bank, and there are a few smaller custodian tries; deciding when to exit markets, when to nent parts is vital when defining competitors, as banks offering their services to special type of enter - and when to expand. global head of sub-custody at SEB Ulf Norén clients, mainly local ones. What is interesting is notes. “SEB is a sub custodian in five CEE mar- that in the last two to three years we have also kets: Estonia, Latvia and Lithuania, which are seen a few providers who have stepped into Jockeying for front runner all EU Markets, plus Ukraine and Russia. From the CEE region on selective basis to establish our perspective, we need to separate the two. their operations in a few “strategic countries”. In terms of major players, Bóta asserts: “The Talking on the CEE as a whole, you have certain With the local custody business, J.P. Morgan market is changing: there are players disap- areas where you find SEB is really big, like in decided to build a strategic full-scale 9 CountryFocus local operation, however they will not be a Cen- Grabois comments: “Global players are more But it does not mean fully harmonised financial tral & Eastern European multimarket service likely to open markets where they see immediate regulation in all the CEE countries. I’ve seen this provider. Within their strategy they identified a scale, and scale is important in our business. The as understandable, because the capital market few important markets all around the world: in regional providers need these markets for their legislation is related to several other laws and Eastern Europe, it is Russia, and J.P.Morgan own scale, so pressure will continue in the region complex regulations including, but not limited to announced that they intend to extend their local and consolidation is foreseeable. The require- civil law, law on taxation etc., and its complexity presence there. This strategy of a global custo- ment for sub custody providers will continue from would be near-impossible to implement in a stan- dian is different than that of a multimarket local non-global SIFIs and SIFIs alike, but the global dardised way. On the other side I see operational sub-custodian like ING, who has a much bigger revenues for the existing regional providers will processes being harmonised, and I believe that market coverage – with the eight major markets be under pressure and SIFIs need to use other institutions that are offering custodian services in Central and Eastern Europe. ” SIFIs where big positions are held. This will have can offer a lot of standard service supporting their a dramatic effect on smaller markets but also cre- clients with the harmonised operations as much The Asian influence ate opportunities to consolidate there, and gain as possible including reporting to clients as well the requisite scale to continue to be a specialist as reporting to local authorities.” Europe is a mature market where investors for small markets. This will not come without in- have been, and will continue to look for oppor- vestment so those willing to invest will benefit.” The idea of similar regulation across the board tunities. However, the fast inflow of money into is also difficult due to countries wanting to pro- Asia and Latin America are proving attractive to Noren agrees that further consolidation is possible tect their national identity. Says Bóta: “These asset managers. but argues that there is still a considerable time- countries will definitely keep their national fla- line until this takes place. “We will definitely see vour. They try to protect their markets.” Matthew Custodians have opposing views on the effect fewer, especially the smaller single market ones Grabois asserts that whilst larger, more devel- of Latin American and Asian markets on the will be subject to considerable pressure. Predict- oped countries are taking steps to standardise CEE region. Says Katalin Bóta of Deutsche: “I ing outcomes is hard, because targets are moving regulation within their own country, harmony think the focus in the whole custody business all the time. I think sub-custodians’ contribution to across the CEE will prove a challenge. is going away from CEE and everything goes the value chain will increase all the time; not least to Asia. That’s one of the major obstacles. My from risk absorption and mitigation viewpoint.” “In December 2011, Russia passed the law for feeling is for the time being, Central and East- one common CSD, which was a good step to- ern Europe is forgotten, and we’re considered Bóta adds that whilst there has been much wards harmonisation. Poland is also moving for- not that important because the balance is not talk of regional providers disappearing from ward with the nominee concept. Furthermore, there, with the only two countries of interest be- Deutsche, sub-custody remains a force to be there is also the Vienna Stock Exchange proj- ing Russia and Turkey.” reckoned with. “I participated in so many con- ect, pushing towards a single exchange market ferences where we discussed the possibility of with a common CCP model. Though cross-CEE Global sales and relationship manager at BNP single market providers disappearing. Tiny re- harmonisation is not yet a reality in the near fu- Paribas Securities Services Matthew Grabois gional providers disappearing, with only global ture, I believe it will also improve the overall cost argues that the growing attractiveness of Latin providers surviving. Then again, how many situation, since systems and operational pro- America and Asia is beneficial to asset owners times after the crisis have we seen announce- cedures could be used across countries, thus in the CEE region. “Is the growth of Latin Amer- ments that this global provider is withdrawing streamlining overall set-ups.” ica and Asia a worry? Absolutely not. Asset from this location or that location? I would say owners want growth and so the current growth that the function or role of sub-custodians might The disparity of legislation also means that markets – Latin America and Asia included – are increase, and it’s going to be a reshuffling be- whilst non-EU member states have 900-odd attracting a proportion of the emerging markets tween the big providers. Don’t forget about the pages of Dodd-Frank to contend with, they will risk based assets. More assets in general will Russians, either. They are starting to buy up be let off from regulation specifically targeted at be allotted to growth markets including the CEE banks in Central and Eastern Europe: Poland, EU member states such as Basel III and KIIDs. and some of the pocket growth markets. I would the Czech Republic, Hungary - it’s a clear trend. “I cannot say 100 per cent, but the general view say that this attractiveness in the Asia and Latin It’s an absolutely changing landscape.” is that non-EU member states will benefit from markets will actually help the CEE as more at- not having to comply with this regulation,” says tention will be paid to emerging markets in gen- Bóta. Juranyi and Grabois both agree, but state eral. It’s like what you see in retail psychology; Regulation, legislation and that being a non-EU member means less pro- the opening of a Subway next to a McDonalds. harmonisation tection and a higher risk for investors. Competition is healthy. We’re always interested “There is no doubt that non-EU member states are in emerging markets and the growth of these The so-called ‘flood of regulation’ has become facing less development and organisational costs,” markets will only help the growth of the CEE.” a somewhat worn-out expression, but in cli- says Grabois. “However investors are most likely Noren takes a more moderate view, acknowl- ché there is truth, as legislation from both the to look first at asset safety and for countries that edging that SEB’s position as a sub-custodian EU and the US continues to impact on custo- have high risk mitigation and regulation – and that means that Asian growth is not a hot topic. “It dians. Matthew Grabois states that UCITS V also applies in the rest of Europe.” is certainly an indication that Europe has to be in particular will give opportunities to players aware of its attractiveness in comparison to the with large scale, and with global custodians A future hub? growing attractiveness of other areas. For us as taking liability through to the agent bank with a sub-custodian, that’s not something we worry regulations AIFM and UCITS V, there will be Unlike America, the UK and Asia, a future hub for about in the medium time perspective.” profound changes as to how the providers investment into CEE countries looks unlikely. “Every choose and organise themselves. bank defines the CEE region differently”, says Bóta. “We define it as the six locations that we operate in, The future of regional custody Yet, in terms of harmonised financial regulation, so I would say that as a hubbing solution, Vienna the consensus seems to be that countries are would make sense. If we look at Turkey, however, Some bigger players in the custodial market in too disparate to offer any kind of congruence in as the gate to a different part of the region, Istanbul the CEE region are close to offering a pan-Eu- the near future. could be a good solution. And also, you must con- ropean service, although in the smaller markets, sider if it is really necessary to create a hub.” will still require the services of sub-custodians. “To a certain extent harmonization has definitely Whether the use of regional custodians will happened,” says Juranyi. “The CEE countries “Scale and the best IT will be the drivers,” concludes lessen as these bigger forces move into mar- are trying to harmonise and implement Euro- Grabois. “The market that innovates the fastest will win, kets, is a fiercely debated issue. pean legislation into their own local legislation. but the economy will also play a major role.” AST 10 www.assetservicingtimes.com CountryFocus
Ten markets, ten cultures, one bank.
For further information please contact: Global Head of GTS Banks: Göran Fors, [email protected] Global Head of Sub-Custody, GTS Banks: Ulf Norén, [email protected] Global Head of Client Relations and Sales, GTS Banks: Patrik Thiis, [email protected] JerseyFocus
An island affair AST assembled a panel of experts to look at how Jersey plans to keep its status at the top of the market
AST: Despite economic conditions, Another set of factors is the infrastructure here, professional and institutional end of the market. Jersey has seen increasing levels which comprises major audit firms, law firms, There are fund regime options ranging from the tax advisers, banks and asset managers, and most highly regulated retail funds, through to of business in the alternative funds our 12,000 finance industry professionals. At the more lightly regulated fund regimes and unregu- sector during 2011, with recent fig- same time we are located in the right time zone lated funds for the most sophisticated investors: ures showing 2.5 per cent year on to service Far Eastern as well as European and Recognised Funds, Unclassified Funds, Private year growth in the net asset value of North American investors and their advisors. Jer- Funds, Expert Funds, Private Placement Funds sey’s infrastructure is therefore tried and tested. and Unregulated Funds. funds administered. What has made Jersey such a success story? As a centre for asset management and Nick Solt: Jersey has a deep pool of talent when it comes to professional service providers servicing, Jersey is used by highly with many organisations like ourselves providing very specialist and bespoke services. Combine professional, sophisticated investors this with a strong reputation for robust regula- tion and you have a jurisdiction that instils a high supported by strong service providers level of confidence in investors and promoters. Phil McGowan, State Street Whilst the global recession has been a difficult time, recently we have seen renewed interest in Lastly, Jersey is adjusting well to the raft of new Jersey has built up particular expertise in alter- both private equity and real estate fund invest- regulation affecting the asset management sec- native, specialist and institutional funds, with a ment and Jersey has created a funds regime to tor. We are well placed to deal with, for example, specific focus on private equity, hedge and real take advantage of this. the requirements of AIFMD. In addition, Jersey estate asset classes. structures are well known and proven. In sum- Alongside are the long term strengths of the ju- Combining these green shoots of recovery in mary, Jersey presents an attractive package to risdiction. Located within the European time zone the very areas in which Jersey has become a the global, professional and institutional invest- and through its unique constitutional position, market leader with the constantly adapting Jer- ment community. Jersey has been able to develop and enhance a sey regulatory framework, has meant that we legal, regulatory and fiscal environment which has have been able to continue to grow despite the Geoff Cook: In contrast to other centres that proved ideal for corporate clients including fund on-going economic challenges. remain focused on specific niche activities or single asset classes, Jersey’s overall competi- managers and lawyers structuring fund vehicles. Phil McGowan: A significant driver of the tive position is based on a balanced portfolio ap- growth in net asset values has been the quality proach, offering one of the widest ranges of fund The appeal of political and economic stability of the assets held here. As a centre for asset regimes and vehicles. should not be underestimated, nor the inherent management and servicing, Jersey is used by skills that the jurisdiction’s workforce can call upon highly professional, sophisticated investors sup- The emphasis in recent years has moved to- through decades of growth and diversification into ported by strong service providers. wards alternative investment funds and the more different aspects of financial services. 12 www.assetservicingtimes.com JerseyFocus JerseyFocus
AST: Jersey is working to change its tion 270 of FSMA provides a procedure for the The knowledge required to deal with asset admin- perception from an offshore special- recognition of investment funds established in istration and data warehousing is abundant here. designated territories whose laws afford inves- More generally, Jersey has a very good story to ist to a more diversified centre. Do tors in the UK protection at least equivalent to tell and there is an opportunity to publicise its An island affair you think perceptions are changing, that provided under FSMA. Jersey has obtained capabilities more widely to assist clients with the and if so, what implications might designated territory status under section 270 of regulatory changes that they are seeing. this have for your business and the FSMA and a number of recognised funds have been recognised by the Securities and Invest- Solt: FATCA is one of a number of international leg- attractiveness of the domicile? ment Board. islative and regulatory changes that will no doubt impact how funds services business operate. Solt: Jurisdictions such as Jersey are at risk of A recognised fund which qualifies under the being pigeon holed due to a general perception regulations made pursuant to the FSMA (Col- However, the reaction of the funds services in- that often groups all the jurisdictions that are lective Investment Schemes) (Designated Coun- dustry in Jersey to FATCA and other proposal classed as part of the offshore industry together. tries and Territories) Order 2003 and is granted a changes such as AIFMD demonstrates we have Collective Investment Funds Certificate is freely the regulatory flexibility and high level expertise This means that Jersey must constantly adapt itself marketable in the UK and may offer its shares for to meet any challenge that is presented. to develop and provide a range of services that are direct subscription by the public in the UK. Jersey not solely providing structures for what is seen as recognised funds may also be marketed to the At MSFA we have already established working the traditional remit of the offshore industry. public in a number of other territories, including parties looking at our approach to these chang- Australia, Belgium, Hong Kong, the Netherlands es to ensure we are compliant where necessary Jersey is working hard to change how it is per- and South Africa and provide investors with ac- and can maintain our high levels of service to ceived both within the UK and globally, with cess to a statutory compensation scheme. our clients. Jersey Finance Ltd, several major law firms and other industry bodies establishing secondary of- fices in other, non-offshore, destinations such as Abu Dhabi, Singapore and Mumbai. Jersey has obtained designated territory status Whilst the changes in perception are only tak- under section 270 of the FSMA and a number ing effect slowly, we believe that once they are established it will mean a wider market and of recognised funds have been recognised by range of services that are available, which consequently will strengthen Jersey’s financial the Securities and Investment Board reputation and, of course, we see ourselves in Geoff Cook, Jersey Finance a strong position to take advantage of the ex- pected resultant expansion. Solt: As a business, the areas that we provide Given that these changes are, perhaps, inevi- Cook: For Jersey one of the telling elements expertise in mean that we have not entered the table given the political pressures in the major has been the findings of the Global Financial UCITS arena. However, the fund regime in Jer- economic centres, we believe that these chang- Centres Index (GFCI), which releases rank- sey is such that it provides the framework that es should not be seen as a threat, but should ings for jurisdictions every six months. In recent has enabled some of the larger organisations to be approached with a positive mind-set and be reports, In addition to being the top ranked off- embrace UCITS compliant funds. seen as an opportunity for Jersey to demon- shore jurisdiction, ranked at no 21, Jersey is the strate that it is a top notch funds centre. only offshore location with a top 10 position in With the constant review UCITS leading to the one of the specialist categories globally. prospect of further changes, we feel that the ability Cook: It is agreed that FATCA will have an impact of Jersey as a jurisdiction and the service provid- across international financial services generally For two successive reports, it has been in the ers individually to adapt to such shifts will continue and all locations will be affected. Jersey’s finance top 10 for private banking and wealth manage- to be important to maintain our competitiveness industry is fully engaged with the regulatory au- ment. In the funds arena, Jersey is competing when compared to other financial centres. thorities and government in assessing the poten- with jurisdictions regardless of whether they tial impact of the US regulation across all sectors are onshore or offshore. I think these factors including funds. We have established a specific are significant in that they demonstrate its fre- AST: Will new regulations such as FATCA Working Party in order to support mem- quently not about being offshore, instead the FATCA will have an impact on Jersey, bers in dealing with the introduction of FATCA. criteria that international investors are looking and how will companies deal with for are expertise within the jurisdiction, the qual- this changing regulatory landscape? The FATCA provisions are in the form of guid- ity of the regulation, its reputation for corporate ance, which make it clear that the US has taken oversight, the political and economic stability of into account representations from foreign gov- the location. McGowan: The wide range of new regulation af- ernments, of which Jersey was one, in seeking fecting our industry is certain to have an impact. to minimise the reporting burden. AST: How have funds established We are in constant dialogue with our clients to assist them to understand and deal with the de- under the UCITS directive been em- That said, it is also important to note that not all mands that new regulations will place on them. financial institutions in Jersey will be engaging braced within Jersey, and what’s in activities that are affected by FATCA or, if they next for UCITS? Many of the forthcoming regulatory initiatives, are, some to only a rather limited extent. Since such as FATCA, AIFMD and Solvency II, will the FATCA provisions will apply to all jurisdic- Cook: Jersey does not offer retail UCITS funds demand enhanced compliance and reporting tions they should not adversely affect Jersey’s (the units in which can be marketed across Eu- needs. Larger asset servicers such as State competitive position. rope) The ability of offshore investment funds Street, which are experienced and skilled in to offer shares directly to investors in the UK data management and reporting, are strongly Jersey also enjoys an excellent relationship with has been restricted by the Financial Services placed to support clients as they navigate the the US. It has signed a TIEA with them as far and Markets Act 2000 (FSMA). However, sec- new environment. back as 2002 and has a Statement of Co-op- 13 JerseyFocus eration between the Jersey Financial Services The PPF regime is part of the on-going evolution- data processing and reporting capabilities. Cli- Commission and the four United States financial ary process of ensuring that Jersey’s fund regu- ents need to be able to identify quickly and with regulators) to formalise existing arrangements lations enable us to provide a competitive and a high degree of granularity exactly where their for cooperation and information sharing. (204) streamlined service and it contains facets such as exposures are so that they can react quickly the certification of the application by a regulated to the risks themselves as well as meeting the AST: How do you see the new Pri- service provider that will hopefully be expanded to regulatory reporting requirements. vate Placement funds regime af- other fund products as part of this process. International investors are tasked with having to fecting the industry? report to different regulators globally and they can AST: Taking into account the evolv- only do this to the extent required if they have McGowan: Against a background of increasing ing needs of international investors administrators who can help them do so. Larger, lead times for private placement funds in other and the changing nature of global more established administrators with strong track jurisdictions, the new regime is an additional records are best placed to meet this need. competitive advantage that Jersey has to offer regulation, how do you see 2012 professional, sophisticated investors. It helps panning out? sophisticated investors to quickly seize on in- In particular, clients who are launching new products need to be able to access support vestment opportunities when they arise and Solt: We believe that Jersey is in a strong posi- in carrying out rigorous due diligence. It ap- make the most of them. tion to continue to benefit as the green shoots of pears that investors are placing more money recovery, hopefully, continue to flourish. with fewer managers and performing deeper Although it’s early days yet, the new private due diligence on them, and transparency from placement funds regime is a great additional The continuing challenges in the financial those managers for being early investors in new strength of Jersey’s. It was a good response to sector can also present opportunities for products and funds. We believe that the trend what the industry was looking for — something the sophisticated investor and we in Jersey towards outsourcing can only grow as regula- that was quicker, simpler, and also more cost are in a strong position to take advantage of tory pressures increase. effective to set up. this. For example, we have seen real estate funds successfully moving from direct real Cook: The outlook for alternatives in 2012 is Cook: Similar in scope to Jersey’s existing estate investment into investing in real estate promising, particularly if you reflect on the statis- COBO (Control of Borrowing Order) private backed loans as a number of banks continue tics in 2011 which was a challenging year. At the funds, the new Private Placement Fund offer- to divest themselves of parts of the real es- end of 2011, alternative funds business continued ing further widens the choice available to inves- tate loan portfolios. to perform strongly, standing at £145 billion - over tors and is designed for ‘fast track’ approval, 75 per cent of the total. Hedge fund business in usually within three business days, providing As far as the changes in global regulation, these Jersey stands at just under £50 billion, and pri- the speed and certainty for investors that is be- should present an opportunity for the service vate equity funds at £39 billion – an eight per cent coming increasingly important in today’s mar- providers in Jersey to demonstrate their ability increase on the previous year and an impressive ket where arrangers need to react quickly to to provide the high quality of service within a 56 per cent increase on 2009. We believe Jer- new market opportunities. well regulated jurisdiction and ensure we are sey’s fund offering has been further enhanced in able to continue expand throughout 2012. 2012 and should encourage more growth. The regime, with its appropriate regulatory oversight, is expected to be attractive across the alternative asset classes, including real es- tate, private equity, mezzanine, cleantech and emerging market funds. Opportunities for the sophisticated The Private Placement Fund also is positioned to support fund managers who do not want to investor and we in Jersey are in a operate funds within the EU and the stringent requirements of the AIFM Directive and the ad- strong position to take advantage of this. ditional costs of compliance that will inevitably arise. Jersey’s Private Placement Fund regime Nick Solt, Moore Stephens will provide fund managers with structuring opportunities to navigate an alternative route around the Directive.
For those specialist private funds which do not fall within the scope of the new Private Place- McGowan: There’s a lot of change and chal- The debate about regulation and changing inves- ment Fund offering, Jersey will continue to oper- lenge in prospect for 2012. This environment tor demands has actually presented specialist ate its COBO regime. creates opportunities that it is important for us to jurisdictions like Jersey with an opportunity to en- be prepared for in order to provide solutions to hance their product range, provide more choice our clients. If we can help our clients to be suc- and safeguard their regulatory standards. Solt: The PPF regime is a positive move for the cessful in asset raising, asset management and industry. This regime will allow us to compete delivering good returns to their investors then with, or even be ahead of, rival jurisdictions in we will all be successful. The global funds industry is seeing some real terms of our ability to set up fund structures shifts. However, if Jersey can continue to quickly and efficiently where required. The greater focus on transparency and report- demonstrate an acute understanding of the ing is driving innovation at the moment. Inves- key trends impacting the funds arena, retain It will be of particular interest to fund promoters tors and asset managers are looking for ever- a commitment to innovation and maintain the who wish to move quickly to take advantage of increasing amounts of data. Moreover, they regulatory conditions to support the needs of an investment opportunity and who have a pool need this information increasingly quickly. Con- corporate and private investors, we will en- of sophisticated investors to whom they are able sequently, investment administrators need to be sure the long-term success of our growing to market their products. able to provide clients with industrial-strength funds sector. AST 14 www.assetservicingtimes.com JerseyFocus
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www.cisx.com SebastienChaker
Automated messaging Calastone’s Luxembourg head explains the issues and solution surrounding automated messaging within the fund distribution market
BEN WILKIE REPORTS
AST: Can you tell me a little about in Luxembourg and Ireland. We opened our Lux- AST: What is holding back the move Calastone - why it was formed, what embourg office in 2010 to cater for the European towards automation? market, and in 2011 we started to expand in Asia. it offers and who your clients are? Chaker: There has been a myth from the be- AST: How automated is communica- Sebastien Chaker: Despite years of invest- ginning of 2000 that all the players in the fund ments in trying to automate fund orders, the tions in the mutual fund industry? industry would all invest in their IT infrastruc- levels of automation in the fund space remain ture in an attempt to move to a single standard. extremely low compared to what we see in the Chaker: There has been 10 years of intensive Many fund managers believed the SWIFT ISO equities space. We were convinced that existing effort and millions have been spent to automate standard would solve the problem and all their solutions to automate fund processing did not the space. ISO standards have been created, clients would move to it. But this didn’t happen. completely meet the needs of the industry. and ICSDs have moved into the market by us- Fund distributors have not been willing to invest ing the systems created for bonds and equity in their infrastructure to automate fund orders What Calastone is doing can be compared to to go into the fund space. There are a number by developing new communication standards what a travel adaptor does for the international of industry groups who have recommended the solely used by the European fund industry. traveller - it provides a simple, reliable and cost- use of the ISO standards. effective way of electronically connecting fund It’s worth remembering that fund distributors distributors and fund managers irrespective of But the latest EFAMA-SWIFT survey on the lev- come from diverse types of organisation - they the chosen standard used by other parties. el of automation of third party cross-border fund could be banks, brokerage firms, insurance orders shows that in the first half of 2011, the companies, pension firms or even specialised Calastone was set up as a private company in rate of transactions that use the ISO standards fund platforms. They all have different busi- 2007, and we started to operate the first trans- is still quite disappointing, at 37.8 per cent. The ness models, different levels of sophistication actions in 2008. Our clients are fund manag- rest of the transactions are bilateral flat files and and different IT infrastructures - they do not ers who operate across multiple jurisdictions there are still over six million faxes processed necessarily think of themselves as being part as well as fund distributors. Our services were by transfer agents in Luxembourg and Dublin. of the fund industry. initially focused solely on the UK fund market, The scary thing is that this number is increas- but by 2009 clients were pushing us into the ing each year, mainly because cross-border dis- Going back to the analogy of the electric adap- cross-border market. So we started offering the tribution continues to expand into new regions tor, you can see that countries or regions have same model for cross-border funds domiciled and to new types of distributors. different voltages and frequencies around 16 www.assetservicingtimes.com SebastienChaker SebastienChaker
the world. But there’s very little debate about from cross-border funds rather than domestic which has a culture of zero defects, there’s no whether or not to harmonise electrical sup- funds. Luxembourg and Dublin have been very tolerance of errors. And when you’re expanding plies, which is what the fund industry is trying successful in promoting UCITS funds across into other markets, particularly those where the to do. Even if the electrical suppliers were able the world – fund managers with UCITS products time difference is significant, doing everything to agree on one global standard, which is un- that were initially set-up for distribution in a se- by fax can mean up to two days before the end likely, just try and imagine the level of invest- lected number of European countries can very investor gets its trade confirmation. ment to change supplies in the countries that easily expand their distribution market across need to adapt. But the main reason why there the globe as more Asian and Latin American AST: Are there particular types of isn’t a debate is because there is a simple solu- countries adopt UCITS. funds that are seeing the benefits tion - plug adaptors. The impact of this is that distributors in new sooner than others? markets often have different operating models In the fund industry, we think we can solve the Chaker: In terms of cost reductions, retail funds problem and accelerate the automation take- and different IT infrastructures, so each time with high dealing volumes from multiple distributors up by creating this interoperability. Everyone you increase distribution, transaction numbers tend to see the cost savings sooner. But the risk can keep their own communication standards increase but the level of automation falls. reduction aspect is the key driver for institutional or and we can put the technology in the middle alternative funds - they have the high value tickets, to translate messages from various messaging Cost is one of the main drivers. Some clients where the financial risk of missing a dealing dead- protocols. The ability to communicate orders be- are reporting savings of up to 60 per cent line is much higher. And if you look at service levels, tween counterparties is not new, but the transla- when they move to automated messaging. So everyone benefits in the same way. tion capability is where we add the value. it’s a big driver, but it’s not the only one - scal- ability is vital. As firms expand into new mar- AST: Is there a difference when you AST: What is driving the move to- kets they would need to increase their staff if they kept everything manual, but having auto- implement the solution in new mar- wards automation in this sector - is mated processes make the whole expansion kets, compared to those that are it simply down to cost? much simpler. more established?
Chaker: If we look at the UCITS industry we Another very important factor is service levels to Chaker: They have the ability to start building can see there is a strong trend of growth coming distributors and this is particularly vital in Asia, automation more quickly, so in one sense it’s 17 www.assetservicingtimes.com driver for theautomation ofthebusiness. How Chaker: ers operate? lation altering thewayfundmanag- AST: Howmuchischanging regu funds soldonaglobalbasis,it’s aone-waytraffic. see many US, Asian or Latin American domestic currently the only true global fund product We don’t from Europeanfundslookingoutward–UCITSis Most ofthecross-borderfundexpansioncomes to 40percentoftheassets,andthat’s growing. often accountsforup the restofworldnow cent of where the assets are sourced from. But ropean market, and that remains about60per in theEu UCITS werecreatedfordistribution ofhav scale of ing onefundrangedistributedglobally. Initially economies the from benefit orIreland,forexample, platform inLuxembourg distribution set upaglobal who Fund managers ing focusonLatin America. gion for fund managers,but there is an increas markets. At the moment, Asia isthe biggest re Chaker: cross-border markets? AST: Whatisdrivingthegrowthin els ofautomationarenotyetthere. transfer agencycosts,thelev- simply because distributors account for 50 percentof its total butthese 20 percentofitstotalfundholdings to who saysthat Asian distributionrepresents actions. There’s onefunddistributorwespeak trans- more formanual fund managers charge to they need level, at thetransferagent lies ing fund orders. process costs ofmanual The main processing of way secured and efficient cost a think ofitastheirindustry, they justwanttohave as well as other financial products, so they don’t tors, betheybanksorbrokers,distributefunds - it’sthe automation theirindustry. Fund distribu Chaker: AST: Whoneedsthisautomation? messaging capabilities. are fewerthan10distributorswithSWIFT fund go ontotheSWIFT network. Across Asia, there easier.to the ability have Butoftentheydon’t distributor base their European automation of to acceleratethe helping fundmanagers been operatingisby The waywehave Fund managers are the onesthatneed are managers Fund I don’t believe that regulation is a direct I don’tbelievethat regulationisadirect The growth is coming from emerging from emerging The growthiscoming ------processing isnotyetamajorissue. main verylow, which meansthecost of manual ers. In countries like Vietnam, labourcosts re manag- fund for expense significant a coming still cheaper,and alsobe growing butrapidly Kong, SingaporeandKorea,labour costs are to thecostoflabour.down is generally InHong in Europe for automation need The increasing bution. There’s also the issue of labour costs. and thereisstillverylittlecross-borderdistri- laysia are still relyingmostly on domesticfunds Firstly, the likesof Vietnam, Thailand andMa kets in Asia, and therearetwo reasons for this. Wemar the moremature within tendtowork year forthepastfewyears. year on have seentransactionlevelsdouble tion of automation andseveralof our clients umes -atthemomentthereisverylittleadop tant regionintermsofmanualtransactionvol- markets, for ourclients Asia isthe mostimpor in the global at theopportunities When youlook - essentiallyfollowingtheneedsofourclients. in HongKongtocoverthisregion the ground tion in Asia. Sothisyearwehaveputpeopleon number ofrequeststoprovideasolu creasing have rapidlygrown,wereceivedanin flows Asian As base. distributor European their of the automation to accelerate fund managers is byhelping The waywehavebeenoperating sively distributebackinto Asia. toexclu- creating aUCITSproduct companies now alsoseelarge Asian asset management their presencethere.Butwe gion orexpanding in there either settingupoperations managers fund global of number growing a is years five to Chaker: in thisregion? lastone. Howdo you seethemarket the industry as awhole and for Ca AST: Asia isagrowth area forboth the costburden,therebyreducingfunds TERs. conscious. Automating isaneasywaytoreduce fund managers have become much more cost- ers have a big impact on costs and as a result ever, alltheregulationsimposedonfundmanag ferent in everycountry, we have demonstrated Although theregulations anddynamicsaredif major playersin this market. our networktoother successfully expanding and severallargedomesticfunds. We arenow one ofthelargestwrapplatforms that includes than ninemonthswe’vecreated apilotgroup advisers. We setup a basein Australia in2011 andinless financial through distributed mainly similar to that of the UK, with domestic funds Chaker: very different? market, or are the requirements of the late wellfortherest Asian base in Australia -doesthistrans AST: You already have asuccessful Whatwehaveseenoverthe past three The isvery Australian fundslandscape 18 ------move toautomationmuchquicker. big difference process to from thepastandmakeswhole a is which benefits, the of tage to make significant IT investment to take advan none ofourclientsneeds we areinteroperable, every marketisdifferent- ofcourse butbecause June. I think thisprovesourmodelisexportable wan andHongKong which weexpect to start in We’repilots in currentlysettingupsimilar Tai the secondpartofyear. roll out our networkto all the major playersin then and wewill in Singapore, funds distributed a pilotwithseverallargedomesticandoffshore have fourof the largestlocaldistributorsrunning five than more years withverylittleachieved.In April wewill for automation about talking been have people where Singapore, in perience So wehavealreadyreplicatedthe Australian ex that our model isexportableindifferent markets. lastone doingtoprepareforthis? veloping in the future?WhatisCa- AST: Howdoyouseethemarketde the industry. AST day,for be abigmissedopportunity thiscould players donotgettheautomationlevelsupto tosaythatifthemajor Needless engineered. to bere- need models would investor servicing and mechanisms payment significantly, crease fund industry. Transaction couldin- volumes for the This wouldnotbeshortofarevolution product providersandtodealintofundsonline. from directly online to getinformation mediaries, are expected to be less reliant on financial inter advice -they toprofessional of clientsinrelation agers. This willmeanabigchangeinbehaviour of assetman- clients the new becoming eration the comingdecadeisFacebook/Twitter gen- over so on.Whatweseehappening visers and traditional advice channels - banks, financial ad come fromthepre-internetdaysandstillrelyon over the next 10-20 years. Current investors of investors behaviour space isthechanging Chaker: Onetrendofparticularinterestinour SebastienChaker www.assetservicingtimes.com
Sebastien Chaker Managing director - - - - Calastone Transaction Network Luxembourg - - - SebastienChaker
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All exchange The chief executive of Channel Islands Stock Exchange explains the benefits of listing on a recognised stock exchange
CISX FOCUS
There are three main benefits to be derived Now more than ever, it is particularly important ny. Of course the stock market mechanism can from listing securities on a recognised stock to restore public confidence in the financial mar- be use for other processes which require securi- exchange, of which the CISX is one such ex- kets and exchanges can play a significant part ties to be distributed, such as privatisations and change within the European time zone: in restoring that confidence by maintaining high open market operations for a central bank. • Transparency standards for the conditions of listing and public • Marketability disclosure of information. In this regard, the ex- • The potential of enhanced liquidity. change’s expectations and that of any code of corporate governance converge: both are inter- There are many Transparency underpins the expectations of ested in transparency and ensuring the equality reasons why a investors, regulatory bodies and market partici- of treatment of shareholders. pants in the post financial crisis environment. As company may choose a result, over the past two or three years there The CISX Market Authority has always worked has been greater focus on the transparency to ensure listed issuers understand fully the im- to list. Most often, the benefits of listing, particularly on an internation- plications and practicalities of the listing rules, ally recognised stock exchange. A listing on any offering information and guidance through main reasons financial exchange should add value and enhance infor- workshops, seminars and conferences – for mation flow to investors (and the public general- example, an upcoming workshop on due dili- institutions wish ly) and it is the exchange’s role to facilitate this. gence by listed issuers post-listing. This educa- tional role has always been a key element of to list are to create The exchange’s public disclosure regime is designed the exchange’s work, but in the aftermath of the to provide information flows not only to investors but financial crisis there is even greater emphasis a market value credit institutions that may also rely upon the listing on disclosure and transparency and the role of status of securities. The CISX requires directors of listing in achieving these goals. listed companies, including investment funds, to ad- There are many reasons why a company may here to ongoing disclosure requirements in relation A stock exchange is traditionally the place where choose to list. Most often, the main reasons fi- to corporate actions, trading activity and adherence companies go to raise capital. It has a further nancial institutions wish to list are to create a to the Model Code. At the heart of the disclosure re- function of enabling the shares which represent market value, to provide investors with an exit gime is the need to ensure that directors of listed is- ownership of a company to change hands at a route, to extend their product’s visibility, to se- suers keep the market informed and to ensure there price that reflects, not only supply and demand, cure a kite mark which demonstrates they have is equality of treatment of shareholders. but also to some extent, the value of the compa- met rigorous disclosure requirements or to at- 20 www.assetservicingtimes.com liquidity may be achieved, on a very simplistic liquidity may be achieved, on a very simplistic short spacetoprovide meaningfulinsightonhow lead to increased liquidity. Whilst is difficult in this Enhanced visibility through a listing mayalso certainly increasevisibility. open upnewdistributionchannels andit will also may issuer. listing listed A the of profile lic enhance investorrelationsand raise the pub turn, in will, This investors. to flow information will create that mark kite definite a is listing A ised stockexchangeinordertobeeligible. tus, bothofwhichrequirealistingonrecogn quoted Eurobond exemption or UK REITS sta Other examplesincludethedesiretoobtain SIPPS orISAsrequireinvestmentstobelisted. a portfolio such as a pension fund. Likewise, of unlistedsecuritiesthatmaybeincludedwithin tors usually havelimitationsupon the percentage type ofinvestor. Forexample,institutionalinves specific a attract to order in listed be to security As stated,insomeinstancesitisessentialfora the investmentfundssector. competitive edge. true within This isparticularly in certaincircumstancesgivethelistedissuera of thesecurityinquestionand the marketability of the reason,a underlying listingwillenhance tract certaintypesofinvestors.Butregardless - - - - It isreasonable tosuggest thatalistingcan cre price sensitiveinformation. to in relation other disclosures interests and of directors’and settlement,rules ondisclosure fortrading to setstandards for exchanges: bility of sharesisonethemainareas ofresponsi Facilitating the market for the buying andselling capital posttheinitialraising. additional ing canalsoassistissuersinraising little secondarymarketactivitymayarise)alist vestors takingalongtermview(andtherefore less of whether sharesarecloselyheldwithin There isstrongevidenceto suggest that regard • • • level, thereneedstobethreekeyelements:
secondary marketintheshares.) others enteringat different timescreatinga tivity, withsomeexitingatpointand correlate tomoreshareac base should (A largeandamoremixedshareholder base. whether thereisamixedshareholder (both initiallyandongoing); how well the issuer/product is marketed and generatemarketactivity); price movement in ordertooptimise quired be re mum oftwomarketmakerswould be of interest to market makers(A mini will of which quality the typeand a security 21 ------and offers afullandunrivalledservice. companies and collective investment schemes of investorssuchaspensionfunds,insurance distribution channelsandunlocknewcategories exchange whose facilitiescanopenupadditional the CISX is an internationally recognised stock secondary markettrading.Whateverthereason, vide apotentialexitrouteforinvestorsthrough investment, tofacilitate market valueor to pro not arise – whether a technical listing to attract ate investmentopportunities that wouldotherwise SponsoredFeature www.assetservicingtimes.com AST Tamara Menteshvili Chief executive Channel Islands Stock Exchange - IndustryOpinion
Eyes wide open Linedata’s Noreen Crowe examines the impact that FATCA will have on firms both inside and outside the US
REGULATORY UPDATE The Foreign Account Tax Compliance Act (FAT- industry lobby groups. However, the final pro- mentation deadlines starting in 2013. Despite CA) was signed into law in 2010 as a compo- posed regulations, which were released on Feb- these challenges, successful implementation nent part of the HIRE Act which was legislation ruary 8, 2012 encompass most of the provisions is achievable, especially if the project is broken aimed at stimulating the US economy and en- that become the final law. into smaller more manageable subsets. FATCA couraging jobs growth. In order to pay for pro- can, for example, be generally distilled into grammes which seek to raise employment, the three general categories: US needed to look for new or missed revenue Overview • FATCA categorisation of your firm or firms/ opportunities and the spotlight fell heavily on tax entities that you manage; evaders. Nobody likes a tax cheat especially in a The primary purpose of FATCA is to ensure the • Identification of US Persons; tough economic climate where ordinary taxpay- proper documentation and disclosure of offshore • Reporting and Withholding. ers have had to shoulder the burden of unprec- investments by US persons. It does this by man- edented bank bailouts. At the same time, the US dating that foreign financial institutions (FFIs) was engaging in a much publicised tug-of-war and non-financial foreign entities (NFFE’s) with Categorising your organisation with the Swiss banking system over the privacy substantial US ownership provide information to laws that some US citizens were using for tax the IRS on their US investors and account hold- The correct categorisation of your organisation avoidance purposes. With a jobs programme to ers. In order to ensure that those foreign entities or of entities that are managed by your organisa- fund and with taxpayer sentiment firmly behind comply with the reporting provisions of the Act, tion, such as fund or other investment vehicles, them, it was abundantly clear to lawmakers that the US has introduced a new 30 per cent with- is arguably the most important step in meeting now was the right time to tackle tax evasion and holding tax on any US source income earned by your FATCA requirements. This step determines the provisions that gave rise to FATCA sailed any non-compliant foreign entities. the extent to which FATCA applies to your or- through the legislature. The regulations have ganisation. Firstly, all non-US entities are bro- yet to be completely finalised as the IRS has The scope of FATCA is very broad and will ken into two main categories: Foreign Financial elicited significant feedback from the financial provide significant challenges for institutions Institutions (FFIs) and Non-Financial Foreign institutions, foreign governments and various as they try to prepare for the various imple- Entities (NFFEs). FFIs are, generally speaking, 22 www.assetservicingtimes.com Industry Opinion must comply with FATCA, the next step is to Once youhaveestablished thatyourinstitution Identifying USinvestors governments orpubliclytradedinstitutions. as anNFFE from categorisationsuch asforeign ment scheme.Certaininstitutions areexempted ownership if the institution isinvest a collective or any stantial means10percentownership information onitssubstantialUS owners.Sub- certify that it hasnoUS investorsordisclose investment itwillneedtoeither a US-related foreign corporation,trust or partnership, makes than thoseofaFFI.NFEE,suchas When The rules relating to NFEEs are less onerous branch hasnotcomeintocompliance. years, the entire group will lose its status if that achieve aParticipatingFFIstatus. After thetwo can group affiliate their that so years two for tus ited. These organisationscangetthislimitedsta tries wherecertainaspectsofFATCA areprohib coun in organisations of affiliates with Branches The final FFI subset consists of Limited FFIs and recalcitrant accountsornon-compliantFFIs. USand they maintaintheirstatusbyexcluding toensure tive buttheywillneedtobediligent have the easiest time from a reporting perspec or FFIswithalowvalue(upto$50million). They profits non funds, pension banks, local as such orless self-certifying. up ofentities They aremade more are compliant deemed Certified into similararrangementsoverthenextyear. Weenter countries expect toseemore should signed information sharingaccordswith the US. France, Germany, Spain,ItalyandtheUKhave only with theUS.Currently in place agreements in countriesthat have FATCA-related reciprocity fund. also bemadeupofFFIs would This group be aLocalFFI institution wouldorarestricted re-certify everythreeyears. A typicalregistered with theIRSand to register still need ant will tered and Certified. Registered deemed compli – Regis into twocategories tions arebroken FFIs. institu- Participating Deemedcompliant as obligations same reportingandwithholding deemed compliantFFIs which donothavethe those being of notable most the classification, There aresomeexceptionstothebroadFFI gross proceedsfromthesaleofUSassets. on incomeand ject toa30percentwithholding and willbesub will bedeemednon-compliant Any FFI that does not enter intothis agreement on USsourceincome. and performwithholding to theIRS report information of thatagreement and aspart ment withtheIRSbyJuly1,2013 FFIs. FFIs Participating will enterintoanagree bad FFIs,ornon-compliant namely participating From aFATCA perspectivetherearegoodand companies. tive investmentfundsandinsurance funds, alterna- brokers, traditional companies, investment banks, includes The FFIcategory engaged inabusinessunrelatedtofinance. NFFEs areforeigninstitutionswhich while institutions that deal inmoneyorinvestment ------appointed officertosign-off oncompliance. FATCAas youneedan especially preparations, control frameworkaspartofyour your internal examine agreement. Itbevitaltothoroughly will the within oneyearofsigning tion musthappen certifica This status. their validate to investor out that has reached manager relationship officer’ to certifythata need will your organisation in ‘responsible a addition, In paperwork. of search a manual including to beperformed need will review a morediligent $1,000,000, than of greater has avalue account If an of theirexisting AML/KYC policies. stitution canleanon information obtained as part what comprises US indicia, but, in general, an in these thresholds. The IRS provides guidelines on performed onanyaccountswithbalancesabove An electronicsearchforUSindiciawillneedtobe is lessthan$50,000and$250,000respectively. be excluded fromreporting where thebalance investors. Individualandentityaccountsmay subject toreportingunderFATCA, namelyUS identify whichinvestorsoraccountholdersare a netprofit of$5. holding whichis 30 percent of $150, resultingin pay $45 inwith $100 andsellat $150, youwill proceeds. Forexample, ifyoubuysharesat subject tobasedon the withholding totalgross eign branchesofUSbanks.Gross proceedsare from USsourcesorinterestfor- salaries interest, dividends,annuities, rentand includes proceeds from the sale of US assets. Income and thegross onincome focus onwithholding will 2015, withholding For 2014and regulations. proposed recent the in manner significant a in Withholding isanareathat the IRS addressed the initialFATCA requirementsfor2014. to that issimilar information require will porting However,re- expect thatlocal we canprobably FATCAof theirlocal requirements. reporting tries withalargequestionmarkarounddetails negotiated, leavinginstitutionsinthesecoun- being still are agreements sharing information totheUS. information relevant The detailsofthe the IRS. will thenrelaythe These governments report totheirown governments ratherthanto tion sharingagreementinplacewith the USwill informa an that have countries in Institutions from USsources. will commenceonincomeandgross proceeds reporting and 2017 process. For2016 boarding on- as partoftheirnormal capturing been have the TIN which many non-US institutionsmaynot able onexistingsystems with theexception of avail be readily should Most ofthisinformation reported ineitherUSdollarsorlocalcurrency. account balances. canbe The accountbalances and (TIN) number identification tax their as well name andaddressdetailsofallUSinvestorsas reporting for 2014 and2015willconsist of the the formsbutwecanexpectthat yet released in 2014. phase commencing The IRShasnot first the with phased gradually be will Reporting Reporting andwithholding 23 - - - - - if thecorrectplanisinplace.AST it isachievable however with challenges; laden ful FATCAand long is certainly implementation or arewithheldupon. The roadto a success- they eitherwithhold where situations to handle systems inorder any circumstanceandupgrade agentin termine iftheyqualifyasawithholding will needto ing perspective,organisationsde withhold a From finalised. are details reporting aspectsofFATCAthe reporting handle oncethe information. Plansshouldalsobeput in place to outreach foradditional US investorsorrequire indicia todeterminewhichinvestorsqualifyas forUS databases their existing to analyse need system design. Inwill addition, organisations ing, investormaintenance,taxand withholding formed insuchareasas the accountonboard - A FACTA tobeper- impactanalysiswill need andIT.to operations and compliance as legal from almost everyareaofsuch the organization FATCA projectteaminplacewithrepresentation already havea ernments. Organizationsshould tors either directlyto the IRS or to their owngov they willneedtoperformreportingonUSinves Compliant categoriesof FFI which meansthat Deemed or Registered into theParticipating fall entities in the asset management industry will situations, most Aside forsomeexceptional industry groups forpracticalresolutions.Staytuned. and institutions financial from ments com- to 2017attheearliestwhilerequesting date the withholding this onboardandextended the workingofthesecalculations. The IRStook to with respect concerns tions raisedpractical to thetotalpayment.Institu ment percentage be calculatedbyapplyingthe pass thru pay then (pass thrupaymentamount)would upon is madefromafund,theamounttobewithheld US assetsovertotalassets.Whenapayment whichisthepercentageof payment percentage a passthru calculate would vehicle investment correctly. stated thatan guidance The original to be in placeorderto perform thisfunction reworks wouldneed cant systemandprocedural lar concern to financial institutions in that signifi payments. Passthrupaymentswereofparticu pass-thru on foreign bewithholding there will The 2017 dateis the earliest date on which www.assetservicingtimes.com Industry Opinion
Noreen Crowe Vice president Linedata ------PanelDebate ab
Asian fund administration Our panel of experts debate the latest developments in the Asian funds market, and discuss how the market will grow Ben Wilkie, editor
Francis Braeckevelt Lilian Wong Asia-Pacific COO Head of fund services, Asia-Pacific, BNY Mellon Asset Servicing HSBC Securities Servives
Mark Neary Keith Hale Managing director, client relationships Executive vice president, client and & business development, Asia-Pacific business development Milestone Multifonds
Colin Lunn Contact me to arrange a meeting at Head of fund services, APAC and Fund Forum Asia. head of business development and CRM APAC Michael Brady UBS Fund Services Asset Servicing Times
AST: How has the past 12 months of capital from West to East as well as the emer- India becoming more prominent, as well as the been in the Asian market for fund gence of China will continue to create significant ever increasing levels of regulation. opportunities for asset servicing in the region. administration? Mark Neary: The last 12 months has seen Keith Hale: With the world and particularly the increased competition in the Asian fund ad- Colin Lunn: The past 12 months have been European Union economy stuttering, the re- ministration market as it becomes a point of challenging, in particular, for hedge funds. Ac- sultant slowing of the various high growth Asia focus for global providers looking to provide a cording to recent research published by Asia- economies made and continues to make the global service and positioning themselves for Hedge, a combination of fund closures and neg- markets across Asia volatile. That said, with regional growth. ative returns caused Asian hedge fund assets Asia constituting approximately only 10 per cent to decline by eight per cent to US$140 billion in of the global mutual fund market, there remains Lilian Wong: 2011 continued to be a chal- 2011. However, encouragingly, growing investor exponential growth potential in the Asia funds lenging year for the Asian funds market gener- demand for Asia-specific knowledge and capa- market, given the global demographics and ally. The aggregate assets under management bilities is reflected in an increase in the amount relative economic growth. were under pressure and many funds were of assets now managed in the region to 78 per also performance-constrained. Add to that the cent of the US$140 billion. The expected investor excitement in RQFII increased investor expectations around report- didn’t meet expected demand, but from a fund ing, especially in the alternative segment and Typically, administrator revenue is linked to as- administration perspective, there will be oppor- the uncertainty of regulatory change coming sets under management so consolidation can tunities and challenges for fund administrators from the US and EU impacting Asia meant that be expected to have a direct impact on the bot- in the region: from new product and fund struc- 2011 was a challenging year. Fund administra- tom line. However, I am confident that the shift tures across Asian markets such as China and tors in Asia were not immune from those forces 24 www.assetservicingtimes.com PanelDebate ab
as their interests are generally aligned with the FATCA regulations will also have a profound impact managers, and consequently adminis- those of their clients. With increased client and impact in Asia on all market participants includ- trators over the next year. investor demands, along with the regulatory ing the investor services providers. As such, it changes, clients are typically expecting more will be critical in 2012 and beyond to focus on Hale: The FATCA regulation, while instigated by of their fund administrators. Challenging market the ongoing analysis and implementation of the US government, will have significant impact conditions have increased pressure on manag- these new global and domestic regulations. across the industry with any fund with either ers to look at new avenues in terms of products US investors or US investments impacted. The and geographies - these place additional de- Even though the details around a lot of the re- Asian fund industry will be affected as much as mands on administrators. The administrators cent measures are still being worked out and European funds. Cost estimates vary between that are better positioned to effectively deal with the full impact may as such not be known yet, 20 and 50 USD per account to identify whether these challenges are ones that have sufficient we have noted a heightened focus and interest an investor is US, non-US, or recalcitrant (won’t size, scale and presence to invest in system by investors and regulators alike to understand say). The impact is huge with very little benefit enhancements, which help them to navigate and prepare for the implementation and impact to anyone other than probably the US IRS (even these changes. of the various regulations and we expect this to that is questionable) and no differentiating out- continue and expand during 2012. come other than to be compliant. Francis Braeckevelt: The fund administration While there is much talk of some form of Asian services space in Asia continued to evolve sig- Neary: The key challenge with regulation in passport, for the time being UCITS remains a nificantly over the past 12 months. Even though Asia is similar to other global markets where the well regarded fund vehicle across Asia, particu- we continued to note ongoing domestic and off- rate of change has increased on a number of larly in the cross border funds. However there is, shore fund launches, the speed and size of the fronts to address investor protection. This has quite rightly, a lot of concern about the potential launches varied widely by country. In selected resulted in increased demand for operational impact of a European financial transaction tax markets, regulators have become more conser- transparency. The challenge is magnified in on the funds business. The cost impact of im- vative in their approach to approving new fund Asia as regional firms have to deal with multiple posing a transaction tax within funds could sig- launches whereas in other markets, the lack of regulatory environments and jurisdiction specif- nificantly change the preferred structures used product innovation and differentiation has been ic compliance and tax regimes, often requiring in Asia and damage the reputation of UCITS as reported as an impediment to the growth of the multiple operating models and multiple servic- the international standard for funds, and per- funds segment in Asia. ing arrangements across countries. We see this trend continuing in 2012. haps hasten an Asian passport. So even though the number of fund launches Lunn: The Foreign Account Tax Compliance Act and the size of the funds launched have been Wong: Regulatory changes over the last two to (FATCA) and the Alternative Investment Fund negatively impacted by the recent turmoil, the three years impacting the funds industry are em- Managers Directive (AIFMD) probably have the general trends for future growth appear to re- anating primarily from the West, though many of greatest impact on service providers. Due to main intact as, across the region, investors ap- these have a global impact including Asia. its extra-territorial scope, FATCA is particularly pear to continue to embrace funds as part of challenging while AIFMD affects both a manag- their overall investment strategy. The regulatory development causing the single er’s ability to raise assets in the EU, as well as biggest stir is Foreign Account Tax Compliance the extent of liability vis-à-vis depositories. In addition, global financial institutions have Act (FATCA). We’ve had a programme running continued to explore Asian manufacturing and since 2010 to understand the impacts and there’s In my view, the developments will be beneficial distribution strategies, requiring market service no doubt it will be the most challenging for the for the industry in Asia as they have the poten- providers to look at rolling out or expanding funds industry in Asia. 2012 will be the year tial to trigger a shift of capital eastwards. This is upon their trustee or (Sub-) transfer agency ca- where Asian managed funds turn their minds to not to say that Asian regulations are in any way pabilities across the region. readying themselves for the practical impacts of deficient, but rather that Asia’s growth potential FATCA and consider the position their funds will will encourage more investors and so managers take with respect to this new regulation.We ex- to seek an Asian domicile. AST: Which regulations are causing pect most funds to comply and as such become the biggest stir in the industry and a participating Foreign Financial Institution (FFI). AST: Has Asia seen the same rising how do you see them taking shape For us, 2012 will be focused on deploying our demands for transparency in the face in 2012? technology and process changes, and, most im- of increasing market volatility and reg- portantly, supporting our clients in understanding ulatory scrutiny as elsewhere in the what the regulations will mean for them. Braeckevelt: Unlike the regulations in other world? How is this being addressed? regions, which are primarily geared towards There is also residual concern that the Alterna- regulating the capitalisation of the different mar- tive Investment Fund Managers Directive (AIF- Wong: As a general rule, yes. And whilst mar- ket participants or towards mitigating systemic MD), in its final form, may work to effectively ex- ket volatility and regulatory change have played risks, the regulators in Asia are focusing more clude Asian managed funds from the EU though a part in driving that change, the expectations closely on distribution and investor protection the private placement regimes will continue to of investors has been a significant catalyst for related processes. co-exist till 2017. change. In turn, fund managers and service providers are positioning themselves to address Obviously, a number of the global regulations Finally, the Dodd-Frank requirements in terms of these demands. The increased demand on that are currently being finalised and rolled out registration and disclosures/reporting along with transparency come with cost implications which in other regions and jurisdictions, such as, but Central Counterparty Clearing requirements for need to be looked at, there’s also a need to en- not limited to, the Dodd Frank act, Basel III or Over-the-counter (OTC) are also expected to sure all investors are treated equally and bear- 25 www.assetservicingtimes.com PanelDebate ab
ing in mind the proprietary trading information and transparency between managers and service Neary: Transparency is also a key issue for intellectual property of the investment manager. providers, particularly administrators, as it is fund managers who have outsourced elements they who maintain records of the fund. Indeed, of their fund operations to one or more service Braeckevelt: Similar to the other regions, the it is not untypical for due diligence today, which providers, particularly those requiring oversight recent market turmoil has resulted in height- previously may have taken the form of a simple across multiple locations to take advantage of ened investor uncertainty and risk awareness questionnaire, to comprise extensive interviews regional opportunities. Increasingly fund manag- as well as increased regulatory oversight across which, in some cases, last many hours. ers are looking to technology to automate valida- Asian markets. As a result, therefore, transpar- tion of service provider outputs such as NAVs/ Neary: Yes. The demand for increased trans- ency has been and continues to be a critical prices and related SLA’s as regulators demand parency is a global phenomenon, and Asia is no component of the current investor requirements increased operational transparency. In summary, exception. We are seeing the increased politici- which are primarily focused on getting detailed transparency barriers are being broken down by sation of investor interests, particularly in coun- insights in their holdings and activity history, operational efficiency supported by technology. portfolio valuations and risk exposures. tries that have developed mandatory pension savings programmes, such as the MPF in Hong Braeckevelt: Depending on issues such as the Investors today increasingly recognise they may Kong. Typically larger investment pools result in nature of the fund (eg, hedge fund structures) not necessarily be as well equipped to deal with increased competition and pressure for lower or the underlying instruments the client has in- this renewed focus on transparency as they had administrative and investment fees and more vested in (eg, structured products), there may previously thought. As a result, where inves- direct comparability of performance outcomes be restrictions or limitations with regards to the tors previously entered into arm’s length vendor from the perspective of the end investor. We see level of transparency service providers can sup- based associations, they have since moved on initiatives such as the MPFA’s Employee Choice port in their reporting. to enter into more holistic partnership relation- Arrangement as an indicator that this process ships, leveraging the partner’s unique position has commenced in Asia. We expect this to di- As some of the current limitations are structural as a central repository of their data. rectly impact fee structures, leading to dilution in nature, removing all barriers to transparency may remain challenging in the immediate fu- In turn, providers continue to invest in their of front-end load and exit fees that has occurred in other markets such as Europe and Australia. ture. However, in a effort to continue to work middle and back office infrastructure to provide towards a more enhanced level of transparency clients with more, better and faster information, AST: Is there still a barrier to trans- and more comprehensive and granular report- covering all aspects of their activities, including ing, providers continue to engage in discussions areas such as valuation, reporting, performance parency and how is this being bro- with individual clients and continue to look for and risk analytics services or investment guide- ken down? better and innovative ways to obtain additional line reporting assistance. and detailed vendor information to be used or Hale: Post the financial crisis, there has been Lunn: The issue here is not transparency itself incorporated in the reporting or analyses. a significant regulatory push and an increasing but rather the need to determine how much Wong: The main barriers are cost and system capability. demand from investors for more transparency, information is necessary. Both regulators and investors are demanding more information particularly for alternative funds. Traditional AST: With the multi-jurisdictional funds typically already have reasonable levels which increases the costs of doing business. of transparency incorporated in the structures However, ultimately, it should be left to investors nature of Asia, which domiciles are by the regulation imposed on them. to determine the appropriate level of transpar- creating the best environments for ency and, in turn, at what cost. If left unchecked, growth and where do you see the The diverse nature of regulation in Asia com- the current model has the potential to create a pared with Europe means that transparency regulatory framework in which it becomes too biggest potential? is much more fragmented at a regional Asian expensive to invest. level. For the more mature Asian markets, such Braeckevelt: The multi-jurisdictional nature of as Singapore and Hong Kong, regulators have Hale: Fund managers, particularly alterna- Asia and the varying stages of development of taken steps to improve investor awareness and tive and hedge fund managers, are often very the constituent markets create different oppor- disclosure. Fund offering documentation now protective over providing details of their trading tunities in the underlying markets. When looking needs to be accompanied by product highlights strategies, as this represents a key part of the at market opportunities, we need to distinguish sheets in Singapore and key fact statements in intellectual property they are offering. As a re- between the potential for domestic fund launch- Hong Kong to explain the investment product sult, full transparency to the underlying details es, offshore fund launches and the possibility and risks in layman terms to investors. of their portfolio and associated strategies can for global financial institutions to distribute their be a significant barrier to transparency. overseas funds into the domestic market. Lunn: Yes. European and US investors are re- Even though in most markets there may be an sponsible for around 80 per cent of all invest- At a regulatory and IT system level, there can be opportunity for one or several of these seg- ment into Asian hedge funds and seek the same challenges over providing the required data in a ments to be developed and we have noted an standards from Asia-based managers as they timely, consistent and accurate basis in order to increasing acceptance of the Asian investors to do from those in their home countries. At the make the transparency meaningful. embrace fund structures as part of an overall in- same time, and as evidenced by short selling vestment strategy, the true opportunity in a spe- disclosure requirements and form PF reporting Ultimately a balance needs to be drawn at pro- cific market remains highly dependent on vary- in the US, the regulatory environment is becom- viding sufficient transparency and risk informa- ing drivers such as, but not limited to structural ing more stringent. tion so an investor can make an informed deci- market and product considerations, the current sion, but without compromising the intellectual and expected market regulatory environment or In Asia, there is an ongoing dialogue regarding capital of the fund strategy. the countries prevailing tax regime. 26 www.assetservicingtimes.com PanelDebate ab
Neary: In terms of fund administration, Asia has traditionally benefited from low labour cost, which has deferred the need for sophisticated technology and higher levels of automation. This is changing rapidly as competition for experienced staff drives up the cost of labour and brings focus to automation, particularly in relation to more complex investment products and high risk operational functions. The biggest potential in terms of location will not ultimately be defined by the lowest labour cost, but by the rate at which technology is embraced and incorporated into regional and global operating models to unlock efficiency.
Hale: Hong Kong has long been and remains a gateway to China, and should increasingly offer international investors a good access point to the Chinese markets. The launch of RQFII indi- cates an increased willingness for China to offer investment products externally, and presumably the other way around in time. In the more immediate term, Taiwan as a grow- ing market represents a less risky opportunity. time. Likewise, it is also an area that the Chinese Hale: 2011 has been a challenging year across Taiwan doesn’t have the exponential potential authorities continue to monitor very closely. segments with some interesting areas of growth. of mainland China, but is already more open The ETF market in the region has fared well In the retail funds segment, Hong Kong and Sin- over the last year and has seen strong growth. and accessible to international investors. In a gapore continue to be attractive markets though recent report by Cerulli Associates, Taiwan was According to a report by Deutsche Bank at the dominated by the offshore funds (UCITS). end of 2011, there were 396 ETFs and other ex- found to be the only Asia ex-Japan market in China does present a significant opportunity which the sale of offshore funds exceeded lo- change-trader products in the region, compared for fund administrators from an onshore per- with 284 at the same time in 2010. It also saw cally based funds. Around 62 per cent of total spective once the regulatory position is resolved. assets under management were in offshore cash flows in 2011 ($19.9 billion) that were twice We are hopeful of this happening sooner rather those of 2010 ($10.8 billion). Whilst the major- funds at the end of June 2011 compared with than later. Growth in India has been stymied 53.2 per cent in 2007. ity of these are equity trackers, they have seen followed by the regulatory clamp down on respectable growth even in light of recent poor Lunn: From a hedge fund perspective, Hong distributor commissions. equity markets performance, and it is a good Kong remains the most popular location, fol- indication of increased interest from new provid- lowed by Australia and Singapore. However, The Malaysian regulator has been working on ers in the region. Korea and China have also either developed longer-term financial market reforms and we are or are developing hedge fund-friendly regula- hopeful of a positive impact on the funds market. In 2011, the revised capital market regulations tory environments. Korea’s retail fund market did not really see the permitted South Korea to promote hedge funds desired impact of the Consolidation Act. Indo- and grow its financial industry and as a result, China’s demographics give it unparalleled po- nesia is a large untapped market offering huge this is likely to be a large growth area in 2012 tential. Indeed, the hedge or “sunshine” fund population where less than one per cent invest with increased investment into hedge funds. market there already stands at US$60 billion, in mutual funds. The regulator there is conduct- Whilst it is early days, the revision should create although the figure does not appear in most ing an overhaul of the mutual fund regulations in a new alternative market in Korea and add to databases. As the market matures and funds an attempt to attract a greater proportion of the Asia’s alternative fund growth. move into the mainstream the potential for population to save via mutual funds. Thailand is growth is exponential. one of Asia’s largest mutual fund markets, how- Asia’s insurance market will also see sustained ever it remains dominated by local banks who growth in 2012, with emerging markets continu- Wong: Asia is a large and diverse region with have distribution capabilities. The proposed ing to outpace developed markets according to jurisdictions at various stages of maturity with introduction of open-ended funds in Vietnam global reinsurer Swiss Re. Life insurance pre- respect to the alternatives sector. Jurisdictions would open up new opportunities for managers miums in Asia are projected to grow by 4.4 per such as Hong Kong and Singapore are mature and administrators albeit the size of the overall cent in real terms. and where most of the region’s alternative fund market might still be relatively small. managers tend to reside. That said, Australia Braeckevelt: In general, Asia is considered as has a well-established alternative sector that AST: Beyond traditional fund manage- the future world growth engine and is widely ex- pected by the analysts and market participants achieved impressive rates of growth in 2011. ment companies, how are other client Japan had a sluggish year in 2011. Whereas to continue its growth in line with what we have Korea introduced, and passed, regulations al- segments faring in the region and are witnessed in recent years or even accelerate its lowing local hedge funds to launch for the first any showing potential for growth? growth rates going forward. 27 www.assetservicingtimes.com PanelDebate ab
As with the traditional fund sector, the other cli- While some larger funds have the potential in particular smaller alternative managers who ent segments have been subject to the same to benefit from appointing a prime custodian, may have been performance-constrained or challenges and opportunities during the past smaller funds are likely to view buying this type have not been able to reach and sustain a criti- financial market turmoil. Given the current and of insurance as prohibitively expensive. cal mass in assets under management in order expected changes in the various market me- to sustain a viable business model. chanics, the anticipated demographic develop- Wong: The safe custody of hedge fund assets and We will also see a number of sizeable new en- ments and the ongoing asset and liability pres- the on-going management of counterparty risk is an trants in to the Asian alternative space. sures across segments and markets, we expect issue that continues to be at the front of the minds of fund managers & investors alike. Investors want to that both the pension and insurance sectors will Existing funds will continue to focus on as- understand what the funds’ exposures are and how become the growth engines for the region. set raising and performance as well as deal they are being managed. Fund managers want with regulatory change and uncertainties associ- As the participants in the pension and insurance to protect their portfolios in a transparent, timely ated with these changes. Funds will also be fo- sectors typically rely on external fund manag- and flexible manner. They also want to deal with cused on dealing with increasing investor demands ers for part or all of their asset allocations, we a counterparty that their investors are comfortable whether it be enhanced due diligence or reporting. expect that the fund sector will be positively im- with. A prime custody solution that can effectively pacted as well as a result. ring-fence assets, with a counter party that inspires From an overall administrator’s perspective, we do confidence will become more common place. Safe- see the demands on data increasing significantly, Neary: We see continued growth in fund distribu- keeping of assets and related depositary liabilities be it as a result of regulatory change or other cli- tors as a significant client segment. Given that a are also a key component (and one of most hotly ent/investor reporting needs. This will become an large proportion of distribution is undertaken by debated issues) of the AIFMD regulations. increasingly important differentiator with players retail and private banks in Asia, we see some dif- having nimble, flexible platforms and efficient data ferences in how administrators will need to pres- AST: How do you see 2012 develop- delivery models being seen to be at an advantage. ent their offerings to address this key segment. ing and what can you share about Administrators will also be required to support Wong: There are significant opportunities for as- your plans in this region? growth plans of asset managers both in terms set managers in the sovereign wealth funds sec- Lunn: I am extremely positive about the future and of new products and new markets. tor in Asia as these portfolios continue to grow expect this year to be characterised by significant and increase their allocation to overseas mar- Players having a strong regional footprint and global growth. As the regulatory environment becomes kets. There are also opportunities riding on the expertise in various products would stand to gain as clearer, I am confident that there will be an influx back of pension fund reform throughout Asia as managers aspire to grow. Besides product and ser- of investors and managers into Asia. The develop- jurisdictions move at different paces from loosely vicing capabilities, there will be a continued prefer- ment of the asset management industry in China, regulated savings schemes to mandatory provi- ence for providers who have the financial strength, in particular, will present huge opportunities. dent funds, often managed by the private sector. scale and commitment to withstand a challenging environment and meet client requirements. Braeckevelt: Even though the full effects of the AST: Are we seeing a move to prime recent financial turmoil may not be known yet and HSBC continues to invest across various ini- it is probably a bit too early to look at the current custody? Why might clients make tiatives and markets in the region. We have situation as a business as usual environment, we this choice and how do you see it significant investment programmes across both our do believe that, as suggested above, the region is traditional and alternative fund servicing segments. developing further? well positioned for the anticipated future growth. The markets will remain volatile with some Hale: Without doubt there is a convergence of tradi- What has become increasingly apparent is that all Hale: potential bright spots in Asia that is seen as tional and mutual funds, due to institutional investors market participants have been affected to some a safe haven from the woes of the West, par- having increased appetite for hedge funds, in turn extent by the recent turmoil and that in Asia, given ticularly the sovereign debt issues in Europe. causing hedge funds to become more traditional in the large home bias, most segments have come The waves of new regulation will be further debat- their liquidity, risk and transparency characteristics. through the turmoil somewhat less scathed com- ed, analysed and adopted throughout 2012 and Similarly retail investors looking for better returns in pared to the same sectors in the global markets. the form of absolute return funds are making mutual there will be increased convergence between tra- funds become more alternative in nature. Even though we believe that the growth will con- ditional and alternative funds globally and in Asia. tinue unabated or even pick up, further diversifica- As a result the service providers such as traditional tion and liberalisation processes in the domestic From a Multifonds perspective, we continue to and hedge fund administrators as well as prime markets will fuel that growth, which, however, will partner with and support our leading service brokers and global custodians are converging in the remain uneven between countries and segments. providers including Standard Chartered, HSBC, services they offer to support hybrid structures. As a Citi, BNP Paribas, Societe Generale and Brown result, the fund administrator that covers long only and Therefore, these new opportunities will also Brothers Harriman across 13 of the major Asian alternatives together and similarly prime custody, a mix create ongoing challenges for all market partici- jurisdictions providing fund accounting, transfer of part global custodian and part prime broker, are pants, including the service providers, and will agency and/or portfolio accounting capabilities very likely to be service provider models of the future. require everyone to continue to review and as- to our administrator clients. sess the countries, segments and changes very Lunn: Prime custody has its benefits but in Asia closely and remain flexible to respond to oppor- Multifonds is well placed to meet the growing the trend has been towards the development tunities as and where they present themselves. demands for efficient fund administration soft- of a multi-prime model. Funds launching today ware in the region and we will focus on working tend to have a minimum of two prime brokers Wong: 2012 is expected to be characterised closely with our existing clients as well as creat- rather than a prime custodian. by a contraction in the number of managers, ing new relationships. AST 28 www.assetservicingtimes.com IndustryEvents
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The 6th Annual Securities Financing NeMa 2012 – the 12th European Clearing FundForum Forum New York Annual Network and Settlement 2012 Asia 2012 Management Conference
Location: Hong Kong Location: New York Location: Budapest Location: London Date: 23 – 27 April 2012 Date: 22 May 2012 Date: 12 - 13 June 2012 Date: 27 - 28 June 2012 www.informaglobalevents.com www.dataexplorers.com www.informaglobalevents.com www.informaglobalevents.com
Whether you are an established The Data Explorers Securities Fi- With over 350 attendees from the European Clearing & Settlement member of the Asian investment nancing Forums bring together the Network Management and Securi- 2012 will bring together the most management community or just world’s most influential securities ties industry in 2011, NeMa has be- important people in the clearing and setting up business in the region, financing professionals, including come THE most important event of settlement community giving you a FundForum Asia is an unmiss- beneficial owners, hedge funds, the year for the network manage- cost-effective and time-efficient op- able opportunity for you to show- prime brokers, agent lenders and ment community - bar none. portunity to meet with your peers and case your expertise, learn from regulatory experts; all of whom come clients all in one place, at one time. the industry leaders and make together each year to engage in de- vital new contacts. bates that will help define and drive the future of securities financing
Covering all areas of ASSETSERVICINGTIMES securities services Don’t miss out. Subscribe FREE ONLINE ASTWWW.ASSETSERVICINGTIMES.COM
29 www.assetservicingtimes.com Please quote VIP code: PeopleMoves Discount10% Network Management 2012 FKP2326ASTAD Industry appointments g
Tim Jones will act as AIS Fund Administration’s Jason Cholewa will serve as the new vice presi- 12th Annual new senior vice president and sales manager dent of Alps Fund Services, a fund administrator Over 350 of the London offices. to the alternative asset management industry. “Once again a sharp and compact Attendees in update of the most important topics Formerly director of business development at Cholewa, formerly the head of Alps’ Boston opera- ASSETSERVICINGTIMES in the business right now, and 2011 exceptional possibility to meet your HedgeServ, Jones will be responsible for AIS’ tions, will now be responsible for its growing hedge AST colleagues, competitors and clients all European sales effort. fund administration business on the East Coast. at one place and one time.” Janne Palvalin, NORDEA “I have wanted Tim on our team for many years, “Jason has been an integral part of our team here Publisher: Justin Lawson (attendee at NeMa 2011) and I am thrilled he has joined AIS to help steer at ALPS over the past several years and brings a [email protected] our growth in Europe, said Paul Chain, presi- wealth of knowledge and experience to his new Tel: +44 (0)20 8249 2615 dent of AIS Fund Administration. “This comes role at the firm” said Mike Procter, senior vice Office fax: +44 (0)20 8711 5985 at a very good time, as we are currently rolling president and director of business development. out a new reporting platform.” Editor: Ben Wilkie New York Portfolio Clearing (NYPC) has ap- [email protected] Fund services provider Maples Fund Services pointed Alexander Broderick as CEO. Tel: +44 (0)20 3006 2710 Maintaining A Resilient Network In A Globally Shifting Environment hopes to expand its European operations with Journalist: Georgina Lavers More Than 70 Top Level Insights Will Be the appointment of Steve Lewis as director of A joint venture of The Depository Trust & Clear- Plus Special Key Industry Speakers Taking Part This Year Include: Made By The Following Industry Leaders: European business development. ing Corporation (DTCC) and NYSE Euronext [email protected] Guest Speakers (NYX), NYPC was created to deliver capital and Tel: +44 (0) 20 3006 2888 ■ HSBC SECURITIES SERVICES operational efficiencies to the US futures market ■ UNICREDIT Based in London, Lewis will be responsible for ex- Júlia Király by evaluating and cross margining a clearing Commercial manager: Michael Brady ■ JP MORGAN panding the fund administration and middle-office [email protected] Vice-Chairman ■ DEUTSCHE BANK businesses across the firm’s European offices. member’s risk on a portfolio basis across relat- of the Monetary ■ Tel: +44 (0)20 3006 2859 Council BNP PARIBAS SECURITIES SERVICES ed cash fixed income and derivative positions. John Gubert Colin Brooks Jeffrey Holland ■ THE BANK OF NEW YORK MELLON NATIONAL BANK UNICREDIT HSBC SECURITIES SERVICES BROWN BROTHERS HARRIMAN He will work closely with Scott Somerville, CEO Published by Black Knight Media Ltd OF HUNGARY ■ BANK OF AMERICA MERRILL LYNCH of MaplesFS, and Toni Pinkerton, global head HSBC Securities Services has appointed Geoff Provident House, 6-20 Burrell Row, Becken- ■ BROWN BROTHERS HARRIMAN ■ of fund services, as well as the regional heads Pullen as head of sales and business develop- ham, BR3 1AT. UK UBS ■ BANQUE PRIVEE EDMOND DE ROTHSCHILD EUROPE ment for UK Alternatives. of fund services for Dublin and Luxembourg, to Company reg: 0719464 ■ BANK JULIUS BAER & CO. LTD execute the firm’s growth strategy. Andrew Walker ■ NATIONAL BANK OF HUNGARY Co-Founder Pullen will report to Tony McDonnell, head of Copyright © 2012 Black Knight Media Ltd. Philippe Kerdoncuff Beatriz Molina Aragonés ■ MORGAN STANLEY TWEETMINSTER Kevin Molloy All rights reserved. STATE STREET BNP PARIBAS THE BANK OF ■ Rene Keller will act as chief operating officer sales and business development of Alternatives SECURITIES SERVICES NEW YORK MELLON CHINA CONSTRUCTION BANK ■ for Information Mosaic, a US-based post-trade in Europe, and will be responsible for sales to STRATE new and existing clients in the alternatives sec- ISITC (The International Securities Association ■ JEFFRIES INTERNATIONAL LIMITED solutions provider. ■ for Institutional Trade Communication). CLIFFORD CHANCE LLP tor in the UK, and building out a business devel- ■ SUMITOMO TRUST & BANKING CO. (USA) opment coverage model for existing HSS hedge Don’t Miss ■ Keller will guide the company’s IT team as they Jersey Finance has appointed Heather Bestwick SMARTSTREAM TECHNOLOGIES fund relationships in the region. This Year! ■ STATE STREET provide global support to Information Mosaic’s to the new role of deputy chief executive officer. Workshop Stream On Jean-Michel Godeffroy John Whelan Kelly A. Mathieson ■ NORTHERN TRUST software solutions. EUROPEAN CENTRAL BANK OF AMERICA J.P. MORGAN CHASE & CO. NEW Afternoon of Day One BANK MERRILL LYNCH ■ CITI Pullen joins HSBC from BNP Paribas Securities She will maintain the role of technical direc- ■ “Information Mosaic is a dynamic and growing ING COMMERCIAL BANKING SECURITIES SERVICES Services where he was a senior sales manager for tor, leading the Jersey Finance technical pro- Guest Out-Of-The Box ■ STANDARD BANK NEW Speakers company”, said Keller. “What’s more, its people the UK and global hedge fund business. Previous- gramme, but will have additional responsibility ■ NSD routinely execute solutions to problems that are ly, he worked in prime brokerage consulting roles at for several operational functions including hu- ■ Bigger And Better “Network ■ NORDEA very hard to solve. I am pleased to join a team Bear Stearns and Lehman Brothers in London. man resources, finance and IT. Risk” Summit Day ■ THOMAS MURRAY LIMITED ■ of this high calibre.” ■ EUROPEAN CENTRAL BANK The 3 NeMa Evening Dominic Hobson György Dudas Odessa Weber ■ Geoff Cook, Jersey Finance CEO, comment- GLOBAL CUSTODIAN KELER GROUP JEFFERIES EUROCLEAR Tony McDonnell said: “We are pleased to wel- Receptions: 18+ Hours Of INTERNATIONAL LIMITED ■ SEB Information Mosaic CEO John Byrne said: “The ed: “Heather’s appointment to the new role of Networking Accompanying The come Geoff into this newly created strategic ■ GLOBAL CUSTODIAN Conference new regulatory and legislative environment means role. Geoff will be instrumental in continuing to deputy CEO reflects the growing remit of Jersey ■ CLEARSTREAM ■ that post-trade functions within the capital mar- build our alternatives franchise in the UK.” Finance and in particular, our strategy to sup- “Off The Record” Lunch ■ SOCIÉTÉ GÉNÉRALE SECURITIES SERVICES kets industry are changing rapidly, putting new port the industry in expanding into high-growth Roundtables - New ■ FINANCIAL SERVICES RESEARCH demands on systems. We look to Rene to further XSP announced the appointment of Esmeralda emerging economies, such as China, India and Perspectives And Informative ■ UBS Discussions ■ CENTRAL DEPOSITORY AND SETTLEMENT CORPORATION LIMITED build on our track record of rapid execution.” as marketing committee co-chair of the Gulf Region.” Thibaud de Maintenant Paul Harrington Ben Parker Estrella AST DEUTSCHE BANK MORGAN STANLEY UBS (KENYA) ■ TWEETMINSTER ■ KELER Pre-Conference One Day Summit ■ FRIED, FRANK, HARRIS, SHRIVER & JACOBSON (LONDON) LLP PLUS ■ STANDARD CHARTERED BANK Network Risk ■ INFORMATION MOSAIC ■ SWIFT
Taking Proactive Steps To Ensure The Safety Of Client Assets Through A Rigorous Programme Main Conference 12th & 13th June, 2012 Of Risk Monitoring & Assessment Network Risk Summit 11th June, 2012 Monday 11th June, 2012 Intercontinental Budapest, Hungary
To Register: Lead Sponsors: Tel: +44 (0) 20 7017 7200 Raising The Bar In Recruitment Fax: +44 (0) 20 7017 7807 Email: [email protected] For the latest agenda or to register Scan with please visit: www.nema-event.com Telephone: +44 (0)20 7653 1911 | Email: [email protected] Media Partners: Marketing partner: smartphone QR Reader App: Web: www. hornbychapman.com | Postal: Albert Buildings 49 Queen Victoria Street London EC4N 4SA Arranged by Follow Us On: Supporting Organisation: NeMa Forum
NeMaEventTV hornby Chapman.indd 1 30 www.assetservicingtimes.com2/3/12 15:49:45 Please quote VIP code: Moves Discount10% People FKP2326ASTAD Network Managementg 2012 12th Annual Over 350 “Once again a sharp and compact Attendees in update of the most important topics in the business right now, and 2011 exceptional possibility to meet your colleagues, competitors and clients all at one place and one time.” Janne Palvalin, NORDEA (attendee at NeMa 2011)
Maintaining A Resilient Network In A Globally Shifting Environment
More Than 70 Top Level Insights Will Be Plus Special Key Industry Speakers Taking Part This Year Include: Made By The Following Industry Leaders: Guest Speakers ■ HSBC SECURITIES SERVICES ■ UNICREDIT Júlia Király ■ JP MORGAN Vice-Chairman ■ DEUTSCHE BANK of the Monetary ■ Council BNP PARIBAS SECURITIES SERVICES John Gubert Colin Brooks Jeffrey Holland ■ THE BANK OF NEW YORK MELLON NATIONAL BANK UNICREDIT HSBC SECURITIES SERVICES BROWN BROTHERS HARRIMAN OF HUNGARY ■ BANK OF AMERICA MERRILL LYNCH ■ BROWN BROTHERS HARRIMAN ■ UBS ■ BANQUE PRIVEE EDMOND DE ROTHSCHILD EUROPE ■ BANK JULIUS BAER & CO. LTD Andrew Walker ■ NATIONAL BANK OF HUNGARY Co-Founder Philippe Kerdoncuff Beatriz Molina Aragonés ■ MORGAN STANLEY TWEETMINSTER Kevin Molloy STATE STREET BNP PARIBAS THE BANK OF SECURITIES SERVICES NEW YORK MELLON ■ CHINA CONSTRUCTION BANK ■ STRATE ■ JEFFRIES INTERNATIONAL LIMITED ■ CLIFFORD CHANCE LLP Don’t Miss ■ SUMITOMO TRUST & BANKING CO. (USA) ■ SMARTSTREAM TECHNOLOGIES This Year! ■ STATE STREET Jean-Michel Godeffroy John Whelan Kelly A. Mathieson ■ NORTHERN TRUST Workshop Stream On EUROPEAN CENTRAL BANK OF AMERICA J.P. MORGAN CHASE & CO. NEW Afternoon of Day One BANK MERRILL LYNCH ■ CITI ■ ING COMMERCIAL BANKING SECURITIES SERVICES Guest Out-Of-The Box ■ NEW STANDARD BANK Speakers ■ NSD ■ Bigger And Better “Network ■ NORDEA Risk” Summit Day ■ THOMAS MURRAY LIMITED ■ EUROPEAN CENTRAL BANK ■ The 3 NeMa Evening Dominic Hobson György Dudas Odessa Weber GLOBAL CUSTODIAN KELER GROUP JEFFERIES ■ EUROCLEAR Receptions: 18+ Hours Of INTERNATIONAL LIMITED ■ SEB Networking Accompanying The ■ GLOBAL CUSTODIAN Conference ■ CLEARSTREAM ■ “Off The Record” Lunch ■ SOCIÉTÉ GÉNÉRALE SECURITIES SERVICES Roundtables - New ■ FINANCIAL SERVICES RESEARCH Perspectives And Informative ■ UBS ■ CENTRAL DEPOSITORY AND SETTLEMENT CORPORATION LIMITED Discussions Thibaud de Maintenant Paul Harrington Ben Parker DEUTSCHE BANK MORGAN STANLEY UBS (KENYA) ■ TWEETMINSTER ■ KELER Pre-Conference One Day Summit ■ FRIED, FRANK, HARRIS, SHRIVER & JACOBSON (LONDON) LLP PLUS ■ STANDARD CHARTERED BANK Network Risk ■ INFORMATION MOSAIC ■ SWIFT
Taking Proactive Steps To Ensure The Safety Of Client Assets Through A Rigorous Programme Main Conference 12th & 13th June, 2012 Of Risk Monitoring & Assessment Network Risk Summit 11th June, 2012 Monday 11th June, 2012 Intercontinental Budapest, Hungary
To Register: Lead Sponsors: Tel: +44 (0) 20 7017 7200 Fax: +44 (0) 20 7017 7807 Email: [email protected] For the latest agenda or to register Scan with please visit: www.nema-event.com Media Partners: Marketing partner: smartphone QR Reader App: Arranged by Follow Us On: Supporting Organisation: NeMa Forum
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