Network Management
Governance and process design
The model used for managing a sub-custodian network can have huge cost and risk consequences if it is not robust and well designed. We make sure that the governance and oversight of the sub custodians meets up to rigorous scrutiny from internal groups, clients and regulators.
Risk assessment modelling
Having a continuous risk assessment model in place ensures that not only the periodic checks and controls are in place, but that in the event of a market or supplier issues, risks can be mitigated by moving quickly and avoiding reputational and financial loss.
Sub-custody strategy
Whether a 3rd party or direct custody model is operated, having a coherent strategy that is clear and can be explained to clients and regulators is more important than ever. We can help design a strategy that satisfies the current environment and also future proofs an organisation during change.
Benchmarking
Knowing that an organisation has negotiated a good deal is important, and benchmarking against like for like buyers of asset services is a valuable way of demonstrating competitiveness. We have access to a number of benchmarking tools that can help do this, quickly and efficiently.
Selection and retention management
The process and decision points for choosing a sub-custodian or for changing one has many different aspects. These might include risk, cost, service and reciprocity. There may also be other influences from a corporate level that can make the decision more difficult.
Our model takes all this into account and provides a clear pathway to delivering an objective and explainable result to the final decision that takes all stakeholders’ views and requirements into consideration.
Tariff analysis and savings
The cost of suppliers represents a significant opportunity to renegotiate them and deliver better value, without harming the overall relationship. In short, whatever an organisation is paying to its suppliers is probably too much. We can show what can be achieved with an existing sub-custodian or with an alternative, in a variety of scenarios.
Custodian Management
RFP management
Selecting a global custodian or fund administrator can be time consuming and frustrating. However, uniquely in vendor selection consultancy, our management team have worked directly for seven of the major Global Custodians and know the market at a forensic level.
Being independent we can manage the RFP process from start to finish, engaging with all the major providers, to arrive at the optimum result for our clients from both a price and service perspective, whilst also meeting all their technology, risk and regulatory requirements.
Benchmarking
as a clients’ business volumes and values increase, it is important to make sure their global custodian or fund administrator reflects this in their pricing. Our benchmarking capabilities enable us to review pricing and renegotiate a more competitive deal when necessary.
Cost analysis and savings
In addition to explicit fees, global custodians and fund administrators earn additional revenue from the day to day processing of their clients’ business. This additional revenue can be significant, and with a potential negative impact on a clients’ investment performance. We show our clients where to make savings and improve the tariff with their suppliers.
Service quality improvement and value
It is not only cost that counts and we have a lot of experience of knowing how to drive better service standards, better deadlines, clearer lines of communication and better reporting whilst simultaneously reducing operational risk and creating efficiencies.
Transition management
The process of transitioning custodian or administrator requires knowledge and expertise and a great deal of planning. We can manage a transition and use our experience to help the process move smoothly and with the minimum of disruption, and we are well acquainted with all the major custodians and fund administrators.
Rescue plan for poorly performing custodians
Moving providers is a last resort. Before that point is reached, we can build and manage a rescue plan to recover the relationship and address the issues that are causing the poor performance.
Vendor Management
RFP management
Choosing and managing a 3rd party can be expensive and time consuming, but needn’t be so. We can manage this process from start to finish, engaging with all the major vendors to achieve the best result in terms of both price and service whilst also meeting all of the technology, risk and regulatory requirements.
Benchmarking
We provide a benchmarking service that enables clients to know and demonstrate to their management that they receive value for money and have negotiated the optimum deal for their organisation.
Cost analysis and savings
The frequency of renegotiating contacts can have a significant bearing on costs - especially if the current pricing does not reflect the evolution of the business. Utilising our extensive experience we are able to set out the best achievable deal, and negotiate with 3rd parties to in order to deliver it.
Service quality improvement and value
It is not only cost that counts when building a relationship with vendors. We have a lot of experience of knowing how to drive better service standards, better terms, clearer lines of communication and better reporting from vendors, whilst at the same time, reducing operational risk and creating efficiencies.
Transition management
If a client decides to change from one vendor form another, whether it is a technology supplier or office supplies, the process needs to be carefully planned and managed to ensure a smooth handover and minimal disruption to their business. We manage this from the start to finish and have experience of successfully delivering transitions between vendors.
Rescue plan for poorly performing vendors
Moving vendors is a last resort. Before that point is reached, we can build and manage a rescue plan to recover the relationship and address the issues that are causing the poor performance. We follow through and ensure sustainable and tangible actions are in place to meet the requirements of both parties going forward.