Reducing the number of custodians at asset managers pays off. Current practice shows that maintaining relationships with multiple custodians produces more disadvantages than advantages. For example, it is operationally inefficient and complex for the asset manager. This leads to higher internal costs and higher costs for the services purchased. In the past, there were valid reasons for multiple custodians, such as risk diversification, takeovers and differences in services in the countries where investments are held. However, due to developments in recent years, custody services have become a commodity and there have also been many developments that have significantly reduced risks.
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