Author: Gordon Platt

NEW HORIZONS

By Gordon Platt

With every new regulation that hits global trust and custody banks, a new service is born for subcustodians. Keeping up is expensive and challenging, but nonetheless it is a good time to be in subcustody.

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Sub-custodians are not fretting much over the plethora of new rules set up in different markets worldwide in the wake of the global financial crisis of 2008. Whenever a new regulation is implemented it creates an opportunity to introduce a service covering the new requirements—for a fee. However, those subcustodians who want to stay at the top of the pack must invest time and resources to ensure they stay abreast of the changes, no mean feat given the constantly evolving global regulatory landscape.

These firms, which service assets held in trust by custodians, are investing in new systems to guarantee the safety of client assets. Segregation of accounts and careful collateral management are top priorities for subcustodians, which make cross-border investing possible and keep the entire process running smoothly. Meanwhile, margins have become paper thin, and subcustodians are offering volume discounts to attract and maintain clients.

However, there is now a premium being placed on sound advice. On-the-ground subcustody personnel are the eyes and ears of global investors. They are counted on to alert investors to impending risks and opportunities and to handle the mundane tasks associated with corporate actions and taxes. Sub-custodians also interact with local regulators and attempt to ensure that changes are in the best interests of their clients.

In our 10th annual survey of the World's Best Sub-Custodians, Global Finance selected the institutions that reliably provide the best custody services in 70 countries and nine regions of the world. Our editors and reporters, with input from expert sources, selected the winners based on a series of objective and subjective criteria that include customer relations, quality of service, competitive pricing, smooth handling of exception items, technology platforms, postsettlement operations, backup systems and knowledge of local regulations and practices.

In selecting the winners, we also considered market share, commitment to the business, experience and number of staff, innovation, direct links to depositories, financial soundness and safety and range of assets serviced.

REGIONAL WINNERS
North America Citi
Western Europe BNP Paribas
Asia Standard Chartered
Latin America Citi
Caribbean Republic Bank
Central and Eastern Europe UniCredit
Nordic Region SEB
Middle East HSBC
Africa Nedbank
COUNTRY WINNERS
Argentina Citi
Armenia Prometey Bank
Australia HSBC
Austria UniCredit
Bahrain HSBC
Belgium BNP Paribas
Brazil Itaú
Canada CIBC Mellon
Chile Banco de Chile
China ICBC
Colombia Citi
Croatia Zagrebacka Banka
Cyprus Bank of Cyprus
Czech Republic UniCredit Bank Czech Republic
Denmark SEB
Egypt Commercial International Bank (CIB)
Finland Nordea
France BNP Paribas
Georgia Bank of Georgia
Germany Deutsche Bank
Greece Eurobank EFG
Hong Kong Standard Chartered
Hungary UniCredit Bank Hungary
Iceland Íslandsbanki
India Deutsche Bank
Indonesia Standard Chartered
Ireland HSBC
Israel Bank Leumi
Italy Intesa Sanpaolo
Japan Sumitomo Mitsui Banking
Jordan HSBC
Kazakhstan HSBC
Kuwait HSBC
Lebanon HSBC
Luxembourg BNP Paribas
Malaysia Citi
Mexico Banamex
Netherlands BNP Paribas
New Zealand HSBC
Nigeria Stanbic IBTC Bank
Norway Nordea
Oman HSBC
Pakistan Deutsche Bank
Paraguay Banco Itaú Paraguay
Peru Citi
Philippines HSBC
Poland Bank Pekao
Portugal Banco Espírito Santo (BES)
Qatar HSBC
Romania ING Bank
Russia ING Bank
Saudi Arabia SABB
Singapore DBS
Slovakia UniCredit Bank Slovakia
South Africa Nedbank
South Korea KEB
Spain BBVA
Sri Lanka Citi
Sweden SEB
Switzerland Credit Suisse
Taiwan Standard Chartered
Thailand Bangkok Bank
Turkey Deutsche Bank
UAE Standard Chartered
Ukraine UniCredit Bank Unkraine
United Kingdom HSBC
United States Citi
Uruguay Itaú Unibanco
Venezuela Citi
Vietnam HSBC

alt World's Best Subcustodians 2012