Clearstream has partnered with regulatory technology (RegTech) firm ume to offer enhanced know your distributor (KYD) due diligence services for asset managers.
The partnership will improve Clearstream’s Fund Centre platform by expanding the KYD offering to help asset managers fulfil their regulatory requirements on performing due diligence on their distribution partners.
According to the regulations, investment funds may only be sold by financial institutions that have implemented an adequate anti-money laundering (AML) and counter terrorist financing (CTF) sanction programme, and through suitable distribution channels.
The joint digital solution will enable users of Clearstream’s Fund Centre to leverage the ume solutions for flows that are outside of the platform.
In addition to the standardised KYD due diligence questionnaire already provided by Clearstream, asset managers will also have the option to access the KYD information from all or pre-selected distribution partners connected to Fund Centre.
“Our distribution support platform Fund Centre is now able to offer an extended KYD due diligence service, providing a look-through view on the distribution partners connected to Fund Centre,” said Bernard Tancré, head of investment fund services product and CEO of Clearstream Fund Centre.
In May, Clearstream’s parent company – Deutsche Boerse – assumed full control of the Clearstream Fund Centre (formerly Fondcenter) after acquiring the remaining 49% stake in the Zurich-based fund distribution platform from UBS for $429 million.
Deutsche Boerse claimed the Clearstream Fund Centre platform had seen a 25% growth in assets under administration since September last year, reaching a total of €300 billion.
Clearstream has been actively boosting its fund services and distribution capabilities over the last two years, beginning with the acquisition of London-based funds platform Swisscanto Funds Centre (SFCL) from Zurcher Katonalbank, announced in April 2018.
The Swisscanto Funds Centre platform was integrated under the umbrella of Clearstream Fund Desk in May 2019, combining the fund distribution support services with its processing platform Vestima.
Just weeks later, Clearstream then announced it would take over the managed fund administration business of National Australia Bank (NAB).