Outsourcing opens new doors for custodians

Outsourcing is becoming increasingly common and specialist providers are being used by many fund management groups for settlement, clearing, tax reclamation and the like. The launch of Crest in the UK may stimulate a new wave of outsourcing due to the associated increase in costs of setting up new systems. Some investment houses have decided against outsourcing and aim to tackle these tasks in-house. This can result in greater flexibility.