Credit Suisse outsources structured products business to Delta Capita

21 March 2017 Consultancy.uk

European bank Credit Suisse has appointed Delta Capita to manage its structured products business across Europe, the Middle East and Africa (EMEA). The London headquartered financial services consultancy will serve as service provider for issuance and product governance of Credit Suisse’s structured offerings.

The structured products industry – which comprises financial products such as derivatives, securities, options, indices, commodities, or foreign currencies, and to a lesser extent, swaps – has seen rapid growth over the past decade. Against the backdrop, in combination with the rise of more complex products such as speculative knock-out warrants or factor certificates, the industry has in recent years introduced a range of regulations and standards that are geared at improving control, financial prudence and information for private investors. The majority of those focus on standardising the way in which products are packaged and delivered, down the line improving product governance standards and the quality of products for end clients.

One of the larger players in the landscape, Credit Suisse, recently announced that it has selected Delta Capita as managed service provide for its structured products business across the EMEA region. The international professional services firm specialises in the financial services industry, and has, besides a management consulting and technology implementation arm, a practice that provides managed services, by means of a blended solution of on-site, off-site and offshore services delivered by the firm’s London and Johannesburg offices.

Credit Suisse outsources EMEA structured products business to Delta Capita

Commenting on the deal, Larry Fletcher, head of Credit Suisse’ Solutions business in EMEA, says the outsourcing agreement will enable Credit Suisse to improve its standards and operations whilst lowering costs for end customers. “We expect Delta Capita to be a leading player in delivering these improvements.”

The announcement follows Delta Capita’s appointment as managed service provider to the Plato partnership in September last year – the deal also includes the oversights of its research and analytics unit, MI3. The consulting firm had prior to that been heavily involved in the Plato Partnership, a not-for-profit industry group of buy and sell-side firms, carrying out the role of advisor and project delivery in the early stages of its launch. And earlier this year Delta Capita was appointed by a consortium of banks responding to the regulation on key information documents for Packaged Retail and Insurance-based Investment Products (PRIIPs).

As part of the deal, a number of existing Credit Suisse professionals will transfer to Delta Capita, joining the firm’s London hub, located at Canary Wharf. Joe Channer, Chief Executive Officer of Delta Capita, says that the partnership will allow Credit Suisse to focus its efforts on product development for its clients safe in the knowledge that it can rely on a “scalable and high quality service, coupled with a platform capable of supporting their business.” He expects this to result in a more consistent approach, an improved efficiency (i.e. lower operational costs) and an improved experience for clients.

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