by Joanne Gill, Head of Global Custody and Agency Services within Equities & Asset Management Services EMEA, Bank of America Merrill Lynch
Keeping a company’s asset management strategy up to date is important in any climate – and is particularly critical during periods of upheaval. In the current market, regulatory developments such as Basel III and the European Union’s Alternative Investment Fund Managers Directive (AIFMD) are affecting everything from the cost of transactions to the way in which companies approach the financial markets. This, in turn, is prompting corporate treasurers to think differently about asset management.
Regulatory change may affect companies in different ways, depending on their priorities, goals and business models. For example, many companies are no longer willing to accept exposure to a single counterparty in the current environment. Treasurers are also placing increased emphasis on the need for asset protection, segregation and diversification, resulting in greater demand for custody services.