UK - Brown Brothers Harriman Investor Services is to establish a direct custody facility in the UK.
The move comes as part of a series of investments made by BBH in support of its European business over the past two years.
This includes a dedicated foreign exchange desk in London, the establishment of a European securities lending business and increasing its commitment to BBH’s European brokerage and fund distribution activities.
Some operational support functions for the facility will be carried out by Clydesdale Bank – a subsidiary of National Australia Bank – during the initial stage of the project.
BBH partner Andrew Tucker – who is responsible for European operations – said: “A UK custody capability is another important development in our overall European expansion strategy and it, in particular, reflects our commitment to the UK marketplace.”
BBH’s assets – which are currently held by UK subcustodians – will be transferred into BBH’s own nominee and subsequently serviced by the bank itself.
But Tucker emphasised that this was a strategic decision and not a reflection of the services it had received over the years from its principal sub-custodian HSBC Global Investor Services.
BBH provides specialist services and innovative solutions to clients in over 100 markets for custody, accounting, administration, securities lending, foreign exchange and brokerage services.
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