BNY Mellon said ultra high net worth clients
with deposits of more than $50m would not be affected by a new
holding fee proposed by the custodian bank.
BNY Mellon is to charge institutional clients
with cash deposits of more than $50m a 13 basis point fee to hold
their assets to counter a recent flood of funds into the custodian
bank.
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A BNY Mellon spokesperson said the fee would
only be applied to a small number of institutional clients. Those
clients who maintain routine deposit levels will not be affected,
the bank said.
“In the past month, we have seen a growing
level of deposits on our balance sheet from clients seeking a
safe-haven in light of the global interest rate and credit
environment,” the bank said in a statement.
“As markets stabilize, we expect deposit
levels will trend lower as they are redeployed into the markets. At
that time, it is likely this fee will no longer be necessary.”
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