HSBC Saudi Arabia has been selected as the custodian by Saudi Fransi Capital (SFC) for its range of private and public funds.
The custody mandate comes in the wake of new regulations introduced by the Capital Market Authority of Saudi Arabia that require fund managers to appoint an independent third party to manage the custody of public funds.
It also makes SFC one of the first major fund managers to comply with the requirement.
“We welcome this new regulation,” said Waleed Fatani, chief executive of SFC. “Not only is it in line with international best practice, but it will help strengthen the fund management sector in Saudi Arabia.”
The regulation was also welcomed by HSBC Saudi Arabia’s chief executive and board member Majed Najm who called it “an extremely positive step in the development of asset services and the custody industry in Saudi Arabia”.
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