Insignia Financial has named BNP Paribas as its custodian for the MLC and OnePath businesses following an extensive tender process.
BNP Paribas’ Securities Services business, which has US$15 trillion in assets under custody, has been appointed by Insignia to provide custody and administration services.
According to BNP Paribas, Insignia will benefit from a comprehensive range of integrated solutions and the multilocal expertise of BNP Paribas’ Securities Services business.
The strategic mandate for the MLC and OnePath businesses is set to be finalised in 2025.
Kirk Newey, general manager of fund, accounting and operations, at Insignia Financial, explained that Insignia had undertaken a review of its custody and related services arrangements as part of its simplification strategy.
“Following an extensive tender process, we chose BNP Paribas’ Securities Services business. We look forward to working with BNP Paribas to deliver improved efficiencies and scale benefits to our members,” Newey said.
Daniel Cheever, head of Australia and New Zealand for securities services at BNP Paribas, recognised Insignia and BNP Paribas’ longstanding history in the Australian market.
He commented: “We share common values, such as our commitment to clients, to the community, and to the environment. Our specialist teams in Australia are looking forward to helping Insignia Financial reach its long-term strategic goals by delivering thoughtful expertise and the highest level of service.”
The announcement follows Insignia’s recent separation of MLC Wealth from NAB, having acquired the firm back in 2021.
Described as one of the largest wealth management separations in Australia’s financial services history, it saw over 700,000 MasterKey and Plum accounts and 55 systems and applications.
The separation means Insignia’s employees now operate entirely within the Insignia Financial operating environment and are no longer reliant on NAB systems and technology.
Moreover, Insignia also made headlines last week after it received a confidential, preliminary, non-binding and indicative proposal to acquire all of the shares in Insignia Financial by way of a scheme of arrangement from Bain Capital.
Bain Capital is a US private investment firm specialising in private equity and venture capital, with US$185 billion ($290 billion) in assets under management and offices in Melbourne and Sydney.
According to commentators, the potential $2.7 billion deal for Insignia from the US private equity player could be hard for shareholders to resist and would “open the floodgates” for US firms looking at Australia.
