ICSF gains first agent lender partner and more BO members
09 July 2020 London
Image: PopTika/Shutterstock.com
BNY Mellon has become the first agent lender to partner with the International Securities Lending Association’s (ISLA) Council for Sustainable Finance (ICSF) as it continues to expand its beneficial owner member base and global network.
Since forming in February, the council, which operates as a semi-autonomous entity to ISLA, had initially only formed partnerships with other trade bodies as part of its ambition to encourage the global adoption of its principles for sustainable securities lending (PSSL).
In May, the council’s chair Radek Stech confirmed plans to begin allowing agent lenders and borrowers to join as partners and the US bank marks the start of that transition to creating a broader alliance of entities.
Stech tells SLT that several other agent lenders are also in the process of becoming members which includes being vetted to ensure they are genuinely committed to the PSSL.
Banks are encouraged to contact ICSF’s chair directly to discuss becoming a partner and contributing to the council’s mission for promoting global unity in enhancing sustainability in securities lending markets.
In his new blog post, Stech also confirmed that the Risk Management Association is the latest association to enter the ICSF network.
The US trade body joins its peers including the Canadian Securities Lending Association, the South African Securities Lending Association, and the Pan Asia Securities Lending Association, which are already partners.
As well as a global network of partners, ICSF is also building a membership of some of the securities lending industry’s most prominent beneficial owners.
Also in May, Stech hinted to SLT that the council was in discussions with a major Asian beneficial owner and another in Europe, but that the COVID-19 outbreak had slowed negotiations.
Those lenders have now been named as MN Services based in the Netherlands, together with Japan’s Sumitomo Mitsui Trust Bank (SuMiTB).
The addition of these beneficial owners brings ICSF’s member base to 11, which also includes PGGM, BlackRock, Aviva Investors, Aberdeen Standard InvestmentsAsset Management, NN Investment PartnersGroup, and KBC Asset Management.
The Stech outlined that his initial aim was to focus on gaining buy-in from beneficial owners, as they represent the underlying asset owners and therefore exemplify a crucial piece of the puzzle in establishing industry unity on the principles.
Since forming in February, the council, which operates as a semi-autonomous entity to ISLA, had initially only formed partnerships with other trade bodies as part of its ambition to encourage the global adoption of its principles for sustainable securities lending (PSSL).
In May, the council’s chair Radek Stech confirmed plans to begin allowing agent lenders and borrowers to join as partners and the US bank marks the start of that transition to creating a broader alliance of entities.
Stech tells SLT that several other agent lenders are also in the process of becoming members which includes being vetted to ensure they are genuinely committed to the PSSL.
Banks are encouraged to contact ICSF’s chair directly to discuss becoming a partner and contributing to the council’s mission for promoting global unity in enhancing sustainability in securities lending markets.
In his new blog post, Stech also confirmed that the Risk Management Association is the latest association to enter the ICSF network.
The US trade body joins its peers including the Canadian Securities Lending Association, the South African Securities Lending Association, and the Pan Asia Securities Lending Association, which are already partners.
As well as a global network of partners, ICSF is also building a membership of some of the securities lending industry’s most prominent beneficial owners.
Also in May, Stech hinted to SLT that the council was in discussions with a major Asian beneficial owner and another in Europe, but that the COVID-19 outbreak had slowed negotiations.
Those lenders have now been named as MN Services based in the Netherlands, together with Japan’s Sumitomo Mitsui Trust Bank (SuMiTB).
The addition of these beneficial owners brings ICSF’s member base to 11, which also includes PGGM, BlackRock, Aviva Investors, Aberdeen Standard InvestmentsAsset Management, NN Investment PartnersGroup, and KBC Asset Management.
The Stech outlined that his initial aim was to focus on gaining buy-in from beneficial owners, as they represent the underlying asset owners and therefore exemplify a crucial piece of the puzzle in establishing industry unity on the principles.
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