The only major domestic bank to still provide custody services, NAB, has decided to wind down the NAB Asset Servicing business as part of an ongoing strategic portfolio review.
In a statement, John Comito, NAB executive – asset servicing, said that the decision was not made lightly and came after a long and proud history of serving clients for over 70 years.
“We recognise the appointment of a new custodian is a very important decision,” he said.
“We are focused on continuing to meet our clients’ obligations at the high levels we are known for while supporting a seamless transition to new specialist providers that have global reach and meet our clients’ long-term needs.”
NAB has indicated that there will be no changes to anyone’s role within the business for approximately one year and said that the NAB Asset Servicing team will continue to play an “incredibly important” role as clients transition to new custodians.
“We anticipate the wind-down of the business will take approximately three years and throughout this period, we will offer career transition and support to our colleagues who have deep specialist knowledge and have created a true client-centric culture,” Mr Comito added.
NAB Asset Servicing had $509.4 billion in assets under custody for Australian investors as of June this year, according to data published by the Australian Custodial Services Association, a decrease of 12.1 per cent compared to six months earlier.
It was the fifth largest provider behind JP Morgan ($983.7 billion), Northern Trust ($679.3 billion), Citigroup ($678.8 billion) and State Street ($625.4 billion).
Jon Bragg is a journalist for Momentum Media's Investor Daily, nestegg and ifa. He enjoys writing about a wide variety of financial topics and issues and exploring the many implications they have on all aspects of life.