On the AIFM Directive:First of all it is not finished yet, so let us see how it turns out. But I am not sure that the way it is currently structured is ideal for anyone. Technically it is not a very well thought out piece of regulation yet, but it is not finished. There is a lot of regulation that is flying around at the moment, hopefully, as it gets finalised, it will make more sense than it does today.
With the AIFM Directive, we still need greater clarity around depository liability. I am all for regulation that makes sure that the depository banks do what they are supposed to do, and fulfil their fiduciary obligations. But having regulation that shifts liability regarding factors we cannot control is just doesnt make sense. The danger is you make the process much more expensive and onerous for everyone.
On changes in the business models of custodians:I see the business model becoming more rational. There are so many different ways clients charge for our services, and the clients want to pay for our services, depending on where you are, which market you are in, etcetera. At present, there is a very slow, but perceptible movement towards greater specificity in how we price for our services, rather than bundling services together and having one price.
Over time this is a good thing, because it preserves good economics. If you have very bundled services, what made sense for us and our clients on day one, may not make sense for either us or our clients in a years time. A move for greater granularity over time [for fees] is a good thing. More transparent, more rational, and you can have pricing that truly reflects the underlying economics of the services you are providing.
On future acquisitions:We are very happy to acquire things if the price is right. We dont need to acquire things. We have the scale we need. Some of the prices are still not where we would want them to be.