Florida’s State Board of Administration (SBA) will likely retain BNY Mellon as the custodian of over $166 billion in assets from the Florida Retirement System (FRS) and other non-FRS assets such as the Florida Hurricane Catastrophe Fund.
The SBA evaluation team recommended to Ash Williams, the SBA’s executive director and chief investment officer, to enter negotiations with BNY Mellon in order to keep the bank as their custodian. The SBA also considered J.P. Morgan and State Street.
“Our selection team, after a thorough evaluation, felt BNY Melon offered the services that best met our needs,” says John Kuczwanski, the SBA’s communications manager.
Kuczwanski adds that “there is no set timeframe for Ash to make his final decision, but I expect it to be made in the near future.”
The SBA made the recommendation despite the fact that Florida sued BNY Mellon for allegedly overcharging the state on foreign exchange transaction fees in 2011. The case has yet to be resolved.
Florida Recommends Retaining BNY Mellon as State Pension Custodian
Florida’s State Board of Administration (SBA) will likely retain BNY Mellon as the custodian of over $166 billion in assets from the Florida Retirement System (FRS) and other non-FRS assets such as the Florida Hurricane Catastrophe Fund.