Luxembourg
02 March 2017
Reporter: Stephanie Palmer

KYC data causing chaos at ITAS


Know-your-client (KYC) requirements pose a major challenge for clients opening accounts with transfer agents, and the only way to manage this challenge is through a common solution on which the industry cannot seem to agree.

In a discussion at ITAS Luxembourg, an audience member suggested that the biggest challenge in working with transfer agents is KYC, and asked why there is not more talk about automation in this area.

Graeme Whyte, global head of transfer agency services at BlackRock, conceded: “It is a big challenge, and if we could solve it, it would be a real win.”

Vanessa Roger Grüneklee, global head of distribution support and client operations at AXA Investment Managers, said this will only be possible with a “single common solution”. If there are too many providers, “we won’t solve the problem and it will be a nightmare for the distributor”, she said.

A third panellist, SWIFT’s Tanja Van Sterthem, highlighted the SWIFT KYC Registry platform, which, while originally opened up to the correspondent banking space, is now also open to custodians and fund distributors.

On SWIFT’s platform, institutions contribute an agreed ‘baseline' set of data and documentation for validation, which the contributors can then share with their counterparties. Each bank retains ownership of its own information, as well as control over which other institutions can view it.

Another audience member responded with the argument that SWIFT’s solution remains one of many competing products. While the concept is good, adoption is still an issue, he said, adding in frustrated tones: “Nobody can agree which is the right solution.”

More data services 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
Confluence sets its predictions for 2018
16 January 2018 | Pittsburgh | Reporter: Jenna Lomax
Confluence expects to see “eventual positive systemic change” when meeting new back-office demands
Metzler chooses Visible Alpha’s platform for MiFID II
04 January 2018 | London | Reporter: Jenna Lomax
The addition of Visible Alpha’s ONEaccess’ forward calendar, resource tracking and broker vote applications will enable Metzler to meet the compliance rules associated with MiFID II
Silverfinch and ICE team up on data solution
21 December 2017 | London | Reporter: Becky Butcher
Silverfinch has agreed to provide ICE Data Services’s clients with data on the MiFID II and PRIIPs regulations
Commcise partners with RSRCHXchange for MiFID II
14 December 2017 | London | Reporter: Jenna Lomax
The collaboration allows research consumption data to be passed from the RSRCHX platform to Commcise via an API
GoldenSource takes on data management challenge
01 December 2017 | New York | Reporter: Stephanie Palmer
GoldenSource has launched its new Nexus hosted data management solution, intended to provide a single source of market and reference data
AxiomSL and GridCon partner up on regulatory data transition
28 November 2017 | Frankfurt | Reporter: Stephanie Palmer
The partnership is intended to expand AxiomSL’s footprint in Germany, combining the platform with GridCon’s expertise in data models and German reporting requirements with the AxiomSL reporting platform
Vela launches new data hub
15 November 2017 | London | Reporter: Jenna Lomax
The new data hub will provide clients with access to multiple systematic internaliser liquidity price feeds through a single application programming interface
More data services news