Volcker Rule and Basel IV may hit transition management

Investment banks' reduced ability to do principal trades as a result of the Volcker Rule may inadvertently hit transition management services, says Nick McDonald, a principal responsible for transition management consulting at Mercer in Hong Kong. The planned Basel IV capital-adequacy regime is also likely to have an effect on this business. Moreover, the forthcoming rules may impose stricter requirements in terms of transparency on firms that use external liquidity sources for tr…