Tom Secaur was recently featured in Global Custodian to discuss complications in separating ‘church from state’ following call for division of custodian and asset management units. The suggestion by an influential US think tank last week could have a significant impact on other custodians in the market if such a move was widely enforced.
“Separating ‘church from state’ in our industry would potentially impact everyone from State Street and BlackRock to Northern Trust, BNY Mellon, SEI, Citi, JP Morgan, and several others. I’m not sure you can pick and choose based on designation as a systemically important market utility,” said Tom Secaur, global chief operating officer at Citisoft, a consultancy for asset managers, technology and operations.
“You’ve got Northern Trust Asset Management, JP Morgan Investment Management, and BNY Mellon Investment Management managing over $1 trillion apiece in AUM, and huge services businesses from each: custody and administer transaction processing, fund accounting, and middle/back office services for other asset managers.”
For more on this discussion, read the full article here.