BNY Mellon snares Taiwanese custody mandate

BNY Mellon Asset Servicing wins a mandate to provide global custody services to Taiwan-based life insurance company Farglory Life.
In what is a new mandate, BNY Mellon is the first global custodian to be selected by Farglory Life for the administration and custody of its overseas assets.

Farglory Life is a subsidiary of the Farglory Group, one of TaiwanÆs largest land development and construction companies with a broad range of businesses that includes realty, logistics, hotel and recreation facilities, leasing and life insurance.

ôOver the last few months we have seen more assets moved to custodian banks or counterparty service providers because customers are concerned about the security of their assets,ö says Chong Jin Leow, head of Asia at BNY Mellon Asset Servicing. ôThey now look to custodians to hold these assets as opposed to leaving their assets with trading counterparties. They are also opting for more value-added services such as risk reporting.ö

The funds industry in Taiwan has traditionally had to calculate its own accounts and net asset values (NAVs). Local language, local reporting and complexity have kept some providers at bay. Fund administrators are nevertheless keen to enter this market given its vibrant mutual funds industry.

Global custodians are also starting to see what custody services they need to provide locally, while sub-custodians are looking at how to bundle their local services into a global offering.

"In the current economic environment we believe it was important to select a provider with high credit ratings and a strong balance sheet to ensure the safekeeping of our assets,ö adds Chao Teng Hsiung, chairman of Farglory Life in Taipei.

With total assets in excess of $3.3 billion, Farglory Life is ranked 24th among the 1,000 top financial institutions in Taiwan. The Bank of New York Mellon Corporation has more than $23 trillion in assets under custody and administration, more than $1.1 trillion in assets under management and services $12 trillion in outstanding debt.
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