JP Morgan Closing Transition Management Business

The global custody bank is the second dominant industry player to exit the business in a week, following Credit Suisse’s shuttering of its US business.

(May 20, 2013)—The second major player in under a week is set to close its transition management business, aiCIO has learned.

“JP Morgan is winding down its transition management business,” a spokesman for the bank confirmed to aiCIO on Monday. The spokesman refused to answer questions regarding whether the move affected its global or US-only business.

As one of the largest global custodians with an international reach, JP Morgan has become one of the dominant players in the transition management market. At the end of the 2012/13 fiscal year, the bank had $18.8 trillion in global client assets under custody, according to its annual report.

The news comes less than a week after aiCIO revealed Credit Suisse was closing at least part of its transition management business. The Swiss bank declined to comment on the closure.

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The sector has been under substantial pressure over the past 18 months. In the United Kingdom, the Financial Conduct Authority has launched an investigation into the sector’s practices, in part due to episodic overcharging by State Street’s transition management unit, revealed by aiCIO in late 2011.

There is no suggestion that JP Morgan or Credit Suisse have been involved in any such dealings.

–aiCIO Editorial Team 

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