Welcome to our second issue of The Custodian for 2020. This is a summer unlike any other for most of us, and I hope everyone is keeping well.
A firm’s response in global stress situations reveals how deeply embedded their Environmental, Social and Governance (ESG) factors are on the organisational level. The pandemic has placed focus on the 'S' factor in ESG, with firms’ disaster preparedness and health and safety policies coming under scrutiny.
To allow business to continue, organisations have moved many physical processes into the virtual arena due to lockdowns and other COVID-19 restrictions. We look at how this has been implemented in the area of corporate governance. We also discuss how the COVID-19 crisis has prompted greater interest in central bank digital currencies (CBDCs) amidst concerns around the handling of physical cash. These moves signpost baby steps towards a broader acceptance of digital solutions that could raise the bar for operational resilience across the industry.
In the meantime, business goes on and developments continue apace. In India, local regulatory developments in the investment landscape mean greater opportunity and easier access for foreign investors. In China, strong fundamentals spell good prospects in the midst of global uncertainty.
Finally, on the theme of ‘Business As Usual In An Unusual Environment’, The Network Forum’s (TNF) annual summer event takes place from 29 June – 2 July 2020, but this time in the virtual space. Marking another first for the industry, TNF’s Virtual Summer Meeting is a great example of a resilient and adaptive response to global disruption. In times like these it is more important than ever to gather as an industry to discuss topical issues that concern us all. We are excited to be part of this, and hope to (virtually) see you there!
Margaret Harwood-Jones Co-Head, Financing & Securities Services, Financial Markets
