Finadium has released its model RFP for securities lending and collateral management.
The Request for Proposal (RFP) process in securities lending and collateral management is due to evolve. Historically, selection decisions have focused on operating data, including utilization and how much was earned on a portfolio, and on a description of the lending process. These elements are important and were particularly meaningful for educating plan sponsors entering securities lending for the first time. However, a changing marketplace calls for a different type of evaluation.
An RFP should seek to establish the “spirit” of a lending program; by aligning lender and agent objectives and philosophies, both parties should have a greater expectation of a successful program.
D.C.