The decision of the De Nederlandsche Bank (DNB) in Holland to pull out of commercial custody has resulted in a handful of cli-ents, including KLM Pensioenfond in Amsterdam and the Unilever Progress Pensioenfond in Rotterdam, searching for alternative custodians.
It is estimated that there are not more than 10 former DNB clients up for grabs now, including some of Holland's major pension funds, who have been informed by DNB that they will need to make other arrangements by the end of the year.
Unilever's DFl7bn ($8.3bn) fund in Rotterdam has been quick to institute a search. Managing director Jos van Niekerk says: We have not finalised yet, but we expect to be ready by the end of the year."
DNB manager Paul Gerretson says: "We pulled out of custody for personal clients and our own staff a few years back and now we are getting out of commercial custody. In future we will only do custody for bank reserves, our own fund and for government.""