29 October 2015
Reporter: Stephanie Palmer
Investec adopts Euroclear CSD for UK funds
Investec Wealth and Investment has adopted Euroclear UK and Ireland’s automated settlement and custody system, CREST, for its UK investment fund flows.

The wealth manager has assets under management totalling about £26 billion, and, while distribution of its order payments is already automated, this will be extended to include settlement of units and cash movements, as well as holdings reconciliation.

CREST, Euroclear’s central securities depository (CSD) addresses some of the issues associated with fund processing, including time-consuming manual operations, high costs and high risk, and a lack of precision in the time frame of an exchange.

The system provides end-to-end automation of funds processing, including placement orders, settlement, transfers, reconciliation and corporate actions processing. It is designed to reduce operational and counterparty risk while reducing costs.

It can also help to reduce the trade-to-settlement cycle, allowing all unit movements to be monitored and automating reconciliation.

Judy Price, COO at Investec, said: “Euroclear UK and Ireland’s investment fund service now allows us to process unit trust funds alongside other CREST-eligible asset classes.”

“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.”

Katrina Sartorius, head of product management at Euroclear UK and Ireland, added: “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. So, it is a very rewarding compliment and sign of trust for a CSD such as ours to be chosen by one of the country’s major financial institutions for their domestic flows.”

More news
The latest news from Asset Servicing Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
MiFID II unbundling compliance will be last-minute scramble for 85 percent
23 June 2017 | London | Reporter: Stephanie Palmer
Asset managers are cutting it fine in compliance with research unbundling rules under MiFID II, with 85 percent saying they expect to be compliant in Q4 2017 or later, ahead of the January 2018 deadline
ICMA: NSFR will make EU repo less attractive
23 June 2017 | London | Reporter: Drew Nicol
The association also point to increased automation of highly manual and labour-intensive processes of the market as a way to mitigate rising costs and create efficiencies
Caceis welcomes two new clients to TEEPI
23 June 2017 | Luxembourg | Reporter: Stephanie Palmer
Swiss Life Global Solutions, a Luxembourg-based insurance and wealth management provider, and European asset manager Amundi have joined the Caceis Tailored Electronic Exchange Platform for Investors
ECB to launch new faster payments system
22 June 2017 | Frankfurt | Reporter: Stephanie Palmer
The European Central Bank (ECB) is expanding its TARGET 2 instant payments system to facilitate retail payments throughout Europe
Clients demand innovation in custody
22 June 2017 | New York | Reporter: Stephanie Palmer
Custodians must embrace new technologies if they’re to survive in the digital age, according to a survey of sell-side executives by BNP Paribas Securities Services and TABB Group
Citi recruits Matthew Bax
21 June 2017 | London | Reporter: Barney Dixon
Citi has hired Matthew Bax as its Europe, Middle East and Africa (EMEA) head of sales for custody and fund services
Denise Voss re-elected as ALFI chair
21 June 2017 | Luxembourg | Reporter: Stephanie Palmer
The Association of the Luxembourg Funds Industry has re-elected Denise Voss to serve a further two years as chair of the board of directors
More news