BNY Mellon to Shut Global Transition Management Operations

Over the last 12 months, four providers have confirmed that they are exiting the industry.
By Janet Du Chenne(59204)
BNY Mellon will exit the transition management industry over the next few months.

The shutting down of its global operations was initially reported by aiCIO.

Tim Steele, the custodian bank’s global head of media relations, said the business was non-core and it will be working closely with impacted clients to support them through the exit.

The transition management business at BNY Mellon is currently led by Mark Keleher and has 35 full time staff across the U.S., the U.K. and Australia.

“We concluded that transition management is not core to our business model and our ongoing strategic priorities in investment services,” Steele added.

“We’ve been pushing into a lot of new areas. We are investing time and resources around collateral management and the CSD as part of a refocusing of investor services businesses.”

BNY Mellon will be the fourth provider to depart the industry in less than 12 months. J.P. Morgan recently confirmed the winding down of its Australian transition management business. The provider announced the winding down of its U.S. and EMEA operations in May last year.

Credit Suisse also said in May it would depart the business. Convergex followed shortly afterwards, and in December it agreed to pay $150 million in fines to settle fraud charges. The U.S. Securities and Exchange Commission (SEC) alleged the provider caused many institutional clients to pay substantially higher amounts than disclosed for the execution of trading orders.

BNY Mellon has a minority shareholding in Convergex.

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