Clearstream integrates Swisscanto business under new expanded fund services offering

Recently acquired London-based funds platform will come under newly branded Clearstream Fund Desk.

By Jonathan Watkins

Clearstream is expanding its investment funds service offering following the integration of Swisscanto Funds Centre (SFCL), the London-based platform it acquired in 2018.

Deutsche Boerse Group’s post-trade services provider announced the deal in April last year, bolstering its ability to provide management and data processing of fund launches.

Clearstream adds the fund distribution support services to its processing platform Vestima under the umbrella of Clearstream Fund Desk.

“We are thrilled to be able to offer fund distribution support services to our customers worldwide,” said Bernard Tancré, head of investment funds services at Clearstream. “This service enhancement was strongly driven by client demand. It supports market participants in facing regulatory and other market challenges around fund distribution, such as MiFID II in the European Union and having full control over distribution chains.”

Heightened product governance and regulatory requirements under MiFID II have increased the call for more data, transparency and standardisation in fund distribution.

Clearstream said its Fund Desk services will cover distribution contract negotiation, compliance support services for eligibility control and anti-money-laundering (AML), know-your-customer (KYC) and know-your-distributor (KYD) rules, exchange fund data from asset managers to fund distributors and vice versa, as well as a distribution commission management service.

Global Custodian reported in April that the agreement with Zurcher Katonalbank was for high double-digit million euro amount, which was not disclosed.

Zurcher Katonalbank will remain one of the main distribution partners of Swisscanto Funds Centre going forward. Furthermore SFCL also signed a long-term contract that Swisscanto Fund Management and Swisscanto Asset Management International will continue to act as large fund providers for the company.