Investment Operations

Clearstream Adds New Fund Distribution Support Services

T+1 Settlement DTCC

Deutsche Börse Group’s post-trade services provider Clearstream said it was expanding its investment funds service offering. Going forward, the company will complement its current Vestima funds processing services with distribution support services under the umbrella of Clearstream Fund Desk.

Analysts say heightened product governance and regulatory requirements under MiFID II have increased the call for more data, transparency and standardization in fund distribution, and Clearstream said its new fund distribution support services will support market participants clients to comply.

“This service enhancement was strongly driven by client demand,” said Bernard Tancré, Head of Investment Funds Services at Clearstream. “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.”

Clearstream 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.

After the acquisition of the fund distribution support services provider Swisscanto Funds Centre Ltd. in October 2018, the services have been renamed in Clearstream Fund Desk and fully integrated into Clearstream’s Investment Funds Services product range. According to Clearstream literature, using their existing Vestima account, fund distributors and asset managers can access the new services to expand their international distribution networks.