Custodian role not threatened by depositories, says official

Could technology make custodians redundant? Not entirely. Leading industry practitioners believe the safekeepers will always have their role to play.

Are central depositories increasingly encroaching the turf of custodians' A senior official from the Philippines Central Depository PSD today has allayed a common fear among custodian banks that their safekeeping and custodial roles could eventually be replaced by depositories around the world.

Jerome Arcangel, vice president of the PSD's external affairs division, told delegates at a custody and settlement conference in Kuala Lumpur that the authority has no plans to replace custodians entirely.

I don't think depositories are encroaching the custodians' territory, Arcangel said. Custodians do things that a depository does not do. I look at ourselves as a parking space for assets handled by custodians for and on behalf of their clients....

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