Custody approaches $2.8 trillion
The Australian custodial and administration sector grew by 7.7 per cent in the first six months to 30 June 2015 and has reached $2.78 trillion, according to new data.
The Australian Custodial Services Association (ACSA) found the top five custodians manage 78 per cent of assets under custody, with Northern Trust as the fastest grower at 20.7 per cent.
NAB Asset Servicing remains the largest overall player with $702 billion under custody, followed by JP Morgan ($557.52 billion), BNP Paribas (344.1 billion), Citigroup ($318.39 billion), and Northern Trust ($239 billion).
ACSA chair, David Knights, said: "There are now close to $2.8 trillion worth of assets under custody in Australia, compared to $1.6 trillion on the ASX, which means ACSA's members are looking after assets worth around 176 per cent more than the market value of the ASX".
"This growth in unlisted and alternative assets creates new challenges in terms of how we classify and hold assets such as syndicated loans," he said.
Recommended for you
David Sipina has been sentenced to three years under an intensive correction order for his role in the unlicensed Courtenay House financial services.
As AFSLs endeavour to meet their breach reporting obligations, a legal expert has emphasised why robust documentation will prove fruitful, particularly in the face of potential regulatory investigations.
Betashares has named the top Australian suburbs with the highest spare cash flow, shining a light on where financial advisers could eye out potential clients.
A relevant provider has received a written direction from the Financial Services and Credit Panel after a superannuation rollover resulted in tax bill of over $200,000 for a client.
