Clients are demanding stronger contingency plans and further detail on liability issues, say a number of panellists at the 11th annual NEMA 2011 conference in Croatia.
Clients and client board members all want to talk about the process of people deployment and how custodians interact with subcustodians, in order to understand where their liabilities lie, said Marshall Millsapp, Managing Director, Global Market Infrastructures at J.P. Morgan Treasury and Securities Services, while speaking on the Regulation In The Spotlight – A Business Perspective panel. We have found that clients want to hear about who we work with, the detail of interaction and are able to provide solutions to possible problems, even if it is difficult to do at speed or has yet been proven to work.
When other panellists were asked by Dominic Hobson, Global Custodians Editor-In-Chief, about whether they are experiencing the same situation, Kevin Molloy, Vice President at State Street, agreed.
It is the same in our network, where the recognition of liability by Boards of Directors is the number one concern, said Molloy. Questions that are continually repeated include, how does the process work now between custodians, subcustodians, depositories, what is my liability and how can I increase my contingency planning.
Please click here for all coverage of the NEMA 2011 conference in Dubrovnik, Croatia, this week with Global Custodian.
(LB)