Thomas Murray, the London-based specialist in custody and asset servicing risk, has launched a new asset safety risk initiative aimed at UK pension funds, insurers and asset owners. The initiative provides a structured framework for assessing the financial health and operational resilience of custodians, clearing houses and other counterparties that hold or safeguard client assets.
The launch comes as institutional investors face heightened scrutiny over counterparty risk following a period of market volatility, rising interest rates and several high-profile failures in the financial sector. Thomas Murray’s new service rates counterparties on factors including capital adequacy, credit ratings, regulatory oversight and operational track record, offering trustees a clearer picture of where assets are exposed.
“Asset safety has become a boardroom priority for pension schemes and asset owners,” said a spokesperson for Thomas Murray. “Our initiative gives fiduciaries the tools to monitor and challenge the safety of their asset servicing arrangements.”
The initiative is particularly relevant for UK defined-benefit pension schemes, which hold billions of pounds in assets with global custodians. Trustees are legally responsible for the safekeeping of scheme assets, and recent market events have underscored the need for robust due diligence beyond simple credit ratings.
Industry analysts note that the move reflects a broader shift in the asset management industry towards greater transparency and risk control. “Custodian risk was often overlooked during the low-volatility years,” said one analyst. “Now, trustees are asking harder questions, and services like this provide independent, granular data to support those decisions.”
Source: Thomas Murray