The Bureau of Labor Funds is not satisfied with BNY Mellon's performance on behalf of the National Pension Insurance Fund's overseas portfolio, says a source familiar with the matter.
The US custodian bank has made two internal promotions as it seeks to drive greater collaboration across its investment services and investment management units.
A fresh round of RFPs will be issued by the National Pension Service to local and global custodians as the new chairman prepares for a more aggressive asset allocation.
A pilot securities borrowing scheme has met a lukewarm response despite the establishment of a central counterparty. Complexity in posting assets as collateral is seen as unhelpful.
Making custodians liable for asset losses would raise costs sharply, lead to consolidation and alter the way the industry operates, agree summit participants.
They eagerly await regulatory approval for the first fund admin outsourcing deal, while some see the opening of local custodian business to foreign banks as imminent.