Service Provider Benchmarking and Monitoring

Overview

Our modules provide benchmarking and on-going monitoring of costs, risks and operational performance of service providers, identifying any unnecessary risk exposures and providing confirmation of value for money.

The analysis, ratings and benchmarks cover a comprehensive range of costs and risks named below, which are associated with the management and safekeeping of invested assets, giving an objective picture of service provider capabilities, sustainability and performance.

Services that are currently benchmarked include:

These services can be taken on a one-off or on an on-going monitoring basis.

Thomas Murray IDS Benchmarking and Monitoring

Frequently Asked Questions

Why appoint Thomas Murray IDS to monitor service providers?

  1. Optimisation: Monitoring maintains the competitiveness of a client’s arrangements with its service providers.
  2. Transparency & Objectivity: We collect data on behalf of many clients around the world ensuring objective comparisons of their service providers and their service providers’ peers.
  3. Influence: Thomas Murray IDS, through the value of client assets involved in its benchmarking, monitoring and selection services, has influence with service providers. We use this influence to benefit our clients.
  4. Independence: We provide an independent view of a service provider’s capabilities and performance.
  5. Supplementary: Our on-going monitoring service is not a replacement for a client’s own surveillance efforts but instead provides expert, impartial and objective support to those efforts.

What other benefits can be expected of On-going Monitoring with TMIDS?

Risk Management: 

  1. Identifies and analyses on-going financial, operational, asset safety and asset servicing risks that a client is exposed to.
  2. In Global Custodian monitoring it ensures that the custodian is maintaining an appropriate level of responsibility for sub-custodian risk (note – global custodians do not typically accept responsibility in the event of failure of a sub-custodian – clients rely on the global custodian to monitor the risks in the sub-custodian network).
  3. Ensures that the contract for services is periodically reviewed and reflects changing market practices and does not expose the client to unnecessary risks.
  4. Helps identify and manage on-going post trade and settlement risks that the client is exposed to.

Governance & Compliance Management: 

    Helps meet compliance, regulatory or governance obligations to monitor service providers.

Cost Management: 

  1. Identifies and analyses on-going financial, operational, asset safety and asset servicing risks that a client is exposed to.
  2. Monitors and identifies “hidden costs” that can mask the true overall costs of custody.
  3. Ensures on-going fees remain competitive, particularly in an era of increasing fees.

Performance Management: 

  1. Helps ensure on-going arrangements are appropriate for current and future investment needs.
  2. Monitors the on-going operational performance of the global custodian to prevent “drift” in operational performance.

Our other services

We provide our clients with a number of services including Service Provider Selection and RFP Process and Customised Advisory Services


If you would like to purchase a healthcheck, or find out more about these modules, please contact:

Brian Ward, Director at bward@ids.thomasmurray.com or telephone him on +44 (0) 20 8600 2300


Nick Bradley, Managing Director at nbradley@ids.thomasmurray.com or telephone him on +44 (0) 20 8600 2300