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Custodian and third-party risk monitoring: Ongoing due diligence in the wake of COVID-19
Journal of Securities Operations & Custody,
13
(4),
298-307
(2021)
Abstract
The aim of this paper is to provide the reader with an understanding of how the process of due diligence, particularly in respect of custodians, has developed over the last four decades; how it is today, and how it is likely to function in the post-COVID-19 environment. The intention is always to highlight the best market practice, and to determine what improvements can and have been made to the process to bring deeper under standing of the counterparty being examined, create efficiencies, and wherever possible, leverage technology to improve timeliness and reduce cost. While COVID-19 could never be seen as a positive, it has forced many industries, including financial services, to re-evaluate the way ongoing third-party monitoring and due diligence is per formed and has created some new models that support better outcomes and satisfy regulatory demands.
Keywords: due diligence; third-party risk monitoring; counterparty monitoring
The full article is available to subscribers to the journal.
Author's Biography
Ross Whitehill is Chief Executive Officer (CEO) of Thomas Murray Network Management Ltd, and has been in the securities services industry for 33 years. He was trained as a central banker with the Reserve Bank of Australia until moving to the United Kingdom in 1987. He has worked in global and sub-custody, prime brokerage, securities finance, regulation and consultancy in his career. His role within Thomas Murray, as a third-party risk management company, gives him a unique insight into the securities, funds and cash banking market, and the evaluation, selection and monitoring technologies that the market requires.
