(May 17, 2013)—Credit Suisse is exiting the transition management business.
The firm has stopped bidding on American transitions in the last two weeks, according to sources, and will shutter the business by the end of May.
Industry veterans Fred Fogg and Lance Vegna run the American unit.
The firm's global business is not expected to follow the path of its American unit. Credit Suisse declined to comment.
This isn’t the only change in the beleaguered transition management business, which has been rocked by a serious of issues over the past 18 months. Credit Suisse competitor ConvergEx, for one, has parted ways with long-time transition management executive Carey Pack.
A ConvergEx spokeswoman noted: “Carey Pack has decided to leave ConvergEx Group to pursue other interests. We are pleased that he will be staying on with the firm in a consulting position until the end of 2013. His areas of responsibility will be assumed by other ConvergEx executives.”
The moves comes shortly after it was announced that the UK’s Financial Conduct Authority (FCA) has begun probing London's biggest custody banks as part of its investigation into transparency and the market conduct among transition management participants—part of a long-standing probe into the industry and its practices. There is no evidence of a connection between the recent moves and the FCA action, however.