BNP brings global touch to local custody offerings

Firm says new segregated account model will replicate global custody at a local level.
By Jon Watkins

BNP Paribas has unveiled its new augmented custody programme which aims to replicate the global custody account structure at a local custody level.

The model will use segregated accounts in the place of omnibus in a bid to improve its overall custody processes.

Its augmented custody programme aims to combine the bank’s local presence and technological developments to offer better access to international markets.

The idea is to replicate the global custody account structure at a local custody level, according to Jean Devambez, head of products, asset and fund services, BNP Paribas.

Devambez added that BNP Paribas would no longer use omnibus accounts but segregated accounts across the board.

“Our clients are increasing looking to investing internationally while having to adapt to changing market infrastructure and new regulations. It is crucial that our custody processes evolve accordingly,” he added. “So this programme was the logical next step.”

“Augmented Custody is a transformational programme focusing on client experience through changes in our operations and digitisation of our services. On the operations side for example, we are going to change our account structure.”

Specifics of the new programme include faster corporate actions, extended instruction deadlines on voluntary events, an enhanced data management and data access as well as increased use of a single market identifier for settlement processing.