Asset Management companies act as trusted advisors on behalf of their clients (private or institutional) who entrust their wealth to firms they have selected carefully. In order to do that money is physically transferred from one custodian bank account to another custodian account from which the asset manager takes subsequently the amounts he needs in order to implement his strategy. At signature of the management agreement the client needs to disclose a certain number of personal data including fiscal data and data about potential money laundering issues. This data is the most sensitive information that needs to be protected by the custodian and the asset management company.
When the money has arrived on the custodian account, portfolio management starts implementing the asset allocation strategy. In order to do that specific trades will be executed through security or commodity markets. Information about those trades is the second category of sensitive data that firms want to protect at any time since the strategy represents the competitive advantage for a successful management performance and should not be copied by other portfolio managers.
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