Nordea Enters Into Referral Agreement With Citi for Sub-Custody Services
- 24.02.2021 12:10 pm
Nordea has decided to exit its Nordic sub-custody business and has entered into a strategic referral agreement with Citi. Nordea recommends that its sub-custody clients appoint Citi as their new provider. Nordea is committed to ensuring that clients who do not migrate to Citi will be assisted through an orderly transition of services to a provider of their choice.
Nordea’s sub-custody services provide financial institutions with access to settlement, safekeeping and asset servicing of Nordic securities. Following its decision to exit the sub-custody business, Nordea continues to focus on Nordic corporate, institutional and retail custody business and is committed to ensuring a well-functioning custody and settlement market in the Nordics.
“After careful consideration, we have concluded that the increasingly complex regulatory frameworks do not support us in delivering the level of value we intend for our clients. The arrangement with Citi supports our strategic objective with increased Nordic focus. Our clients that transition to Citi can be confident that their short- and long-term needs are catered for in the best possible way,” says Martin Persson, Head of Large Corporates & Institutions at Nordea.
The agreement with Citi has no impact on Nordea’s cash management services for international financial institutions. There will be no redundancies following Nordea’s decision to exit its sub-custody business.
“We were attracted by Citi’s robust infrastructure and scalability as well as its strategic commitment to the sub-custody business. We look to increase our already robust partnership with Citi for custody and asset servicing needs going forward,” says Magnus Karlsson, Head of Custody at Nordea.
“Citi is committed to the Nordic region and will work closely with Nordea to ensure a seamless transition. We look forward to leveraging our European Single Legal Vehicle platform to facilitate streamlined access and deliver best-in-class service to clients who transition to us in the coming months,” says Ola Mjorud, Nordic Head of Securities Services at Citi.
Citi, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management.