Network managers may be forced to adopt virtual technologies to complete their due diligence processes of sub-custodians, however not all are in agreement of its merits.
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.