Mark Kerns' impact on African capital markets
Africa isn’t always easy for a custodian. The region is characterised by small, diverse markets with equally varied regulatory systems, which means building a sizable business is a tough task. A great deal of time and effort is required along with an on-the-ground footprint and local market expertise to make sure client assets are safe, trades settle on time and all rules are met.
Mark Kerns, the outgoing global head of investor services
for Standard Bank – the dominant custody bank in sub-Saharan Africa – knows the
challenges better than anybody and has overcome substantial obstacles during
his eight years at the company.
Under his leadership the growth of Standard Bank’s investor
services business in sub-Saharan Africa has been exceptional, underpinned by
strong demand from international investors as well as continued development of
the pension savings and insurance markets at a local level.
The company now acts as a trustee, custodian, securities
lending agent, derivatives clearer and more, and works closely with all
relevant regulatory stakeholders across multiple markets.
In the Middle East and Africa, Standard Bank has won many
previous Global Investor/ ISF sub-custody survey awards for outstanding
coverage.
Earlier this year the bank racked up 20 wins, both weighted
and unweighted in nine African nations: Kenya, Malawi, Namibia, Nigeria, South
Africa, Swaziland, Tanzania, Uganda and Zimbabwe. Elsewhere, it came first in
the unweighted category in both Botswana and Zambia.
Clients looking for a wide range of service solutions to
match their needs meant Kerns and his team are expanding the firm’s offering to
include accounting, valuation, compliance and performance services—the things
you see with global custodians.
Mark’s efforts and previous endeavours across the financial
industry make a worthy winner of the Global Investor/ISF Lifetime Achievement
award.
Before the age of 30, he became a director at The WM
Company, a provider of investment accounting, valuation and performance
measurement services. Bankers Trust bought the firm in the late 1980s, which
meant Kerns played a key role in combining the group’s custody capability with
the reporting capabilities of The WM Company.
The fusion led to Bankers Trust becoming one of the first
providers of master custody internationally. A switch to JPMorgan in 1992 saw
him build a master custody business and expand the bank’s reporting services.
Kerns and his team built service capability initially in London and later in
New York.
Bank of New York’s acquisition of JPMorgan’s securities
services meant another move in 1996.
He subsequently spent over a decade at BNY Mellon where he
filled a variety of executive roles, the last of which was executive vice
president and head of fund manager services which included trustee, custody,
fund administration both on and offshore and related services provided to Fund
Managers in Europe, the Middle East and Africa.
“Investors are the lifeblood of the custody business,” said
Kerns at last year’s SIBOS event in Singapore. That’s an ethos that has served
Kerns and the businesses he has worked for well over the years.
Kerns is as confident as ever that Africa will see capital
markets growth. While there may be challenges, the opportunity is clearly there
to see.
Kern’s next move is not yet known but he leaves Standard
Bank in an excellent position to benefit from, and contribute to, Africa’s
financial future.
Charl Bruyns has taken over his role with immediate effect.
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