Blue Sky Asset Management says Barclays Wealth’s comments about Keydata and structured products are flawed.
Last week, Barclays Wealth director Colin Dickie said Keydata’s demise highlighted that provider risk was equally as important as counterparty risk. He said it is a “sub-optimal situation when a product’s promoter, provider, administrator and issuer are all different companies”.
Barclays uses Bank of New York Mellon as an outsourced administrator and custodian of client assets.
Blue Sky chief executive Chris Taylor says the issue of concentration of risk and counterparty diversification ranks higher than any other part of structured product due diligence.
Taylor says: “Diversification of counterparty exposure and counterparty choice provided through independent provi- ders is exactly what well-inf-ormed wealth managers are now alert to and are increas- ingly seeking.
“It is good that Dickie highlights transparency in structured products but he needs to be more transparent and factually correct himself.”