Florida State Board of Administration, Tallahassee, named J.P. Morgan Chase, State Street Bank & Trust and Bank of New York Mellon as finalists in a search for a global master custodian for the $160.3 billion in assets it oversees, said John Kuczwanski, FSBA communications manager.
BNY Mellon is the incumbent. Its contract for the Florida Retirement System’s $131.3 billion defined benefit plan expires in 2012. Its contract for the Florida Retirement System’s $6.3 billion defined contribution plan expires at the end of the year. BNY Mellon also serves as global master custodian for the other funds FSBA oversees.
On Feb. 3, Pamela Jo Bondi, Florida attorney general and one of the three FSBA trustees, filed a notice in Leon County Circuit Court in Tallahassee that her office will seek to take over a lawsuit alleging BNY Mellon overcharged the FSBA for foreign-exchange fees. The suit was initially filed by FX Analytics on Nov. 9, 2009, on behalf of the state of Florida and seeks triple the damages and other penalties.
The attorney general has not filed its complaint of intervention yet, said Jennifer Krell Davis, deputy communications director and press secretary for the attorney general, in an e-mail. She didn't respond to a request for comment on when the complaint will be filed.
BNY Mellon has denied the allegations, saying they are without merit.
R.V. Kuhns & Associates, an FSBA investment consultant, is assisting in the global master custodial search.
The board expects to select a custodian May 27.