The solution is designed to reduce operational costs and risks involved the exchange of documents and data between hedge funds, corporations, broker-dealers and custodian banks.
According to Clarient, Schroders will use the solution to help with know-your-client (KYC) processes for intermediary and institutional investors.
With functionality to identify, collect and validate data required for meeting KYC requirements, the hub is intended to help firms establish and maintain client relationships, and the associated data and documentation, in one location.
"KYC has become more demanding over the past 10 years," said Noel Fessey, Schroders' global head of fund services. "Legislators and regulators demand higher standards of defence against money laundering, terrorist financing and tax evasion. Investors also demand better protection against operational and conduct-of-business risks in intermediary fund distribution networks.”
“The list of documents to be obtained from a prospective customer or counterparty is long, and ongoing review obligations means that they must be regularly checked and renewed if necessary. This is challenging for fund promoters, investors, intermediaries and counterparties, and repetitive for many of them.”
The Clarient Entity Hub now has more than 100 investment managers, corporations, broker-dealers and banks on board, including The Depository Trust & Clearing Corporation (DTCC) and the Clarient founder banks, Barclays, BNY Mellon, Credit Suisse, Goldman Sachs, JPMorgan Chase and State Street.
Matthew Stauffer, CEO of Clarient Global, said: “We are pleased to see continued adoption of the Clarient Entity Hub service across all market segments, as more and more firms are considering utilities for their client entity data management processes.”
He added: “As an industry-owned and governed organisation, we’ll continue to enhance the service to meet clients’ evolving data and documentation management needs.”