ING Securities Services is in the final stages of winding down its fund administration operations in Hungary, Slovakia and the Ukraine, Global Custodian has learned.
The bank announced the news in the summer, following an analysis of Securities Services in the region. It said the fund administration is a local service offering with limited regional aspect.
The decision to close the fund administration businesses impacts some local clients in those countries but will not impact INGs traditional Custody services in CEE. A statement from the securities services providers website said: ING continues making further efforts to improve its sub-custody services and delivering the high level service to its international client base. ING needs to refocus the way this business is conducted and prepare it for future growth. This will result in measures to improve efficiency, implementing additional cost controlling measures and complying with the increasing regulatory requirements both at the international and at the local level.
It is understood the move to close the businesses is further driven by the decision in Hungary to nationalize the main pension fund in a move that will see the government internalize some of the functions that were provided by ING.
(JDC)