Sub-custody and counterparty risk in the spotlight


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 and the potential

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