HSBC Saudi Arabia has been appointed by Saudi Fransi Capital (SFC) as custodian for its public and private funds.
The agreement follows the introduction of new investment fund regulations by the Capital Market Authority of Saudi Arabia, which require asset managers to appoint independent third party custodians for custody of the assets of public funds.
Signing a mandate with an independent custodian makes SFC one of the first large asset managers to seek compliance with this requirement in Saudi Arabia.
Majed Najm, CEO and board member of HSBC, Saudi Arabia, said: “This regulatory change is an extremely positive step in the development of asset services and the custody industry in Saudi Arabia. We are delighted to be working with SFC and we look forward to a mutually rewarding relationship between our organisations.”
Waleed Fatani, CEO of Saudi Fransi Capital, commented: “We welcome this new regulation. Not only is it in line with international best practice, but it will help strengthen the fund management sector in Saudi Arabia. It enables a greater focus on the core capabilities of asset management, while specialist service providers manage the safe-keeping and servicing of assets.”
He added: “We chose HSBC Saudi Arabia due to the scope of its securities services offering as well as the strength and expertise of its local team in Saudi Arabia.”
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