F&C Management Limited and Mellon Financial Corporation have dissolved their UK investment administration agreement and the proposed transfer of affected employees to F&C’s in-house operations function.
The functions that F&C outsourced to Mellon prior to F&C’s merger with ISIS Asset Management include: recordkeeping; trade communication; matching and settlement; reconciliation; treasury services; derivatives support including collateral management; securities lending administration; data services and information delivery.
“Since our merger we have run with both an outsourced operations solution on the legacy F&C business and an in-house arrangement on the former ISIS business,” says Luc Leclercq, head of operations for IT and projects at F&C. “We have determined that our key operations priority is to migrate our investment support functions onto a single solution, so that as our business enters a new growth phase we can meet the needs of our clients in a consistent and integrated manner. Following discussions with Mellon we have therefore jointly decided to unwind the existing agreement.”
Charlie Helmstetter, vice president at Mellon, adds: “We have worked closely with F&C since 1989 and they remain one of our largest European clients. During our regular dialogues over the past few months we discussed the likely impact of F&C’s future growth plans on the current operational arrangements. We fully support F&C’s operations priority, and during the course of our discussions jointly agreed to end the outsourcing arrangement. We would both like to pay tribute to the way that F&C and Mellon operations and IT staff have conducted themselves throughout this agreement. They have been professional and committed to the success of our respective businesses.”