Danske Bank to use Clearstream for third-party fund processing

Clearstream has recently made a number of enhancements to its third-party fund processing platform.

By Joe Parsons

Danske Bank has selected Clearstream as a strategic partner to consolidate its fund processing activities onto a single platform.

The Danish bank will use Clearstream’s investment fund processing infrastructure, Vestima, for all of its funds.

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

“Partnering with an organisation that places the same focus on operational integrity and distribution efficiency as Danske Bank was a critical requirement for us when conducting a review of our primary fund provider,” said Ainura Bizhanova, head of network management and CM partner banks, Danske Bank.

Clearstream has recently made a number of enhancements to its third-party fund processing platform, including the addition of fund distribution support services.

It has also fully integrated the Swisscanto Funds Centre into Clearstream Banking as ‘Clearstream Fund Desk’, to complement the Vestima platform.

The developments are part of Clearstream’s strategy to become a one-stop-shop for funds, whereby it acts as a single point of entry for orders, streamlines cash management and consolidations position reporting.

“Danske Bank will profit from our proven infrastructure known for asset safety and distribution efficiency. This will enable Danske to foster efficiencies for underlying clients and scale their investment fund businesses,” added Bernard Tancre, head of investment fund services, Clearstream.

In March, Clearstream granted Finnish-domiciled funds access to the Vestima platform, with Evli Fund Management being the first local asset manager to onboard its mutual funds.