Technology firm says Association for Financial Markets in Europe due diligence questionnaire is at risk of becoming ‘simply just another questionnaire’.
Oversight of cash correspondent banks has historically been a fragmented process owing to an absence of harmonisation in methodologies and technology platforms.
Few alterations expected to be incorporated into the 2020 DDQ version in what is likely to be a welcome respite for many sub-custodian providers.
The guide will provide investment managers a global perspective when thinking about their own best practices for outsourcing.
Cyber-security could be one of the sections that will be dropped from an industry-wide questionnaire network managers use when selecting a sub-custodian.
The DDQ was at risk of becoming unstuck as network managers pumped the document with their own proprietary questions.
Some sub-custodians have witnessed a dramatic increase in the number of questions being asked in their due diligence questionnaires.