Investec signs up with Euroclear’s custody service

Investec Wealth and Investment has announced that it will adopt Euroclear’s automated settlement and custody service known as ‘CREST’ for its UK investment fund flow.

The deal will see the wealth manager extend their distribution from order placement to full settlement of unit and cash movements.

The service is designed to address common problems associated with manual operations such as their high cost and risk factor.

In adopting the service, Investec, who is responsible for in excess of £26 billion in assets under management, will make use of ‘CREST’s’ delivery-versus-payment settlement service that is currently used in the UK for equity and bond transactions.

“Euroclear UK & Ireland’s investment fund service now allows us to process unit trust funds alongside other Crest-eligible asset classes,” said Judy Price Chief Operating Officer at Investec.

“The decision to consolidate unit trust settlement with UK equity and gilt settlement using Euroclear introduces welcome automation and significantly boosts the operational controls and risk frameworks we have in place.”

Created in partnership with around 40 fund organisations, the CREST system automates the process of fund processing and Head of Product Management at Euroclear UK and Ireland Katrina Sartorius highlighted the system’s efficiencies.

“Extending operational efficiencies to the capital markets where we operate, while in parallel driving out as much risk as possible, is intrinsic to our role in the markets,” she said.

“It is a very rewarding compliment and sign of trust to be chosen by one of the country’s major financial institutions for their domestic flows.”