GSCS Benchmarks Best Major Markets Network 2004

Institutional Fund Services (IFS) has a dedicated team responsible for the selection and management of its sub-custodian network. We will only appoint FSA approved banks as Sub-Custodians and our selection criteria includes:

• Financial strength and creditworthiness
• Quality of their custody service
• Reputation in the market and in ‘informed’ surveys
• Commitment to the custody business
• Commitment to the custody business
• Local area expertise and influence
• Technological investment
• Their adoption of international standards such as SWIFT message protocols
• Our network currently covers 80 markets
  • 34 HSBC Group offices
  • 46 Non-Group

Regular visits are made to conduct a rigorous investigation of safe keeping and security procedures, insurance cover, risk, systems capability and commitment to the custody business. All sub-custodians are required to demonstrate their capabilities in terms of experience, language skills and compliance with industry regulations.

When selecting a sub-custodian, we appoint HSBC Group members only where they can provide an equal or better service at an equal or better price when compared to other providers. This enables us to gain from HSBC’s exceptional financial strength and credit quality and benefit from the high quality sub-custody services provided by Custody and Clearing in Asia & Middle East. Our aim is to appoint the premier provider in each market.

Clients benefit from the consistent level of risk management and control present throughout HSBC. We believe our approach to be representative of the highest standard amongst global custodians and clearly demonstrates our desire to provide the highest quality service to our clients.