Sub-custody and counterparty risk in the spotlight

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The fallout from the Lehman collapse is defining the debate and concerns around custody issues. Whatever the outcome, the auditing profession expected more attention to be paid to sub-custody arrangements and counterparty exposure.The main issues around custody, explains Stuart McLaren at Deloitte, are sub-custody relationships and counterparty risk. “In the wake of recent events, fund managers and the fund’s board of directors have become more aware of sub-custody arrangements an

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