Insignia outsources custody to BNP Paribas

At the same time as the Insignia Financial board considers the attractiveness or otherwise of a takeover bid by Bain Capital, Insignia has further outsourced functions – this time custody to BNP Paribas.

Insignia and BNP Paribas announced that BNP had been selected to provide custody and administration services across the MLC and OnePath businesses with the transition to be finalised next year.

The announcement follows on from Insignia’s recent announcement that it is outsourcing technology and administration services under a partnership arrangement around its superannuation businesses.

The deal with SS&C sees around 1,000 Insignia staff transfer to SS&C.

The custody mandate with BNP Paribas closes the circle on Insignia’s acquisition of MLC Wealth with custody arrangements previously having sat under the umbrella of National Australia Bank’s National Custodian Services.

Commenting on the arrangement, Insignia Financial Fund Accounting and Operations general manager, Kirk Newey said the decision to go with BNP Paribas had followed a review of the firm’s custody and related services.

He said that following an extensive tender process, Insignia had chosen BNP.

BNP Paribas Head of Australia and New Zealand, Daniel Cheever said both companies had a long and continuous history in the Australian market.

“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,” he said.