Cost cutting and the strain of regulatory compliance may be behind an across-the-board decline in satisfaction in custodians in a new survey.
The survey by R&M Consultants asked 748 asset owners, asset managers and banks to score custodians on a range of measures, and found that in almost all cases, scores were lower than last year’s survey.
“Everyone appears to be rushed off their feet and much of the talk is of regulation,” says Richard Hogsflesh, managing director of R&M Consultants. “So maybe that’s why scores have fallen, reflecting the stress people are under.”
A tightening of budgets as custodians adapt to a leaner commercial environment in the wake of the financial crisis may also be to blame, he says.
“When relationship managers no longer have the budget to travel regularly to see clients and are being forced to confine communication to electronic media, be it emails, conference calls or video links, it strips out the human element. It’s not winning favours with clients.”
Pictet was the top-ranked custodian, having come second last year, followed by RBC in second and BNP Paribas in third.
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