15 December 2017
visit www.solutions.lexisnexis.com

Deloitte details costs of mutual fund processing failures

05 July 2007  |  5532 views  |  0 keyboard

The European investment funds industry could cut processing costs by 25% and gain over EUR250 million by streamlining trading, settlement and custody of cross border mutual funds distribution, according to a study conducted by Deloitte and released by securities depository Clearstream.

Furthermore, with Basel II standards coming into effect in 2008, industry participants such as transfer agents and distributors would also save around 20% of regulatory capital required to run their business if mutual fund processes were automated and streamlined, says Clearstream.

The research focused on cross border mutual fund distribution in Luxembourg and Ireland - Europe's two major markets.

The mutual fund industry curently uses different models - transfer agents in Luxembourg and Dublin, central securities depositories in France and Germany or mixed models. But the Deloitte study found that all models currently involve a significant amount of manual processing in order trading.

There is no standardised trading system, says the report, so interfaces have to be maintained with a number of parties. Furthermore, payments of subscriptions and redemptions are processed via different channels with various risk components and a multiplication of intermediaries.

Philippe Seyll, head of investment funds services at Clearstream, says: "This study, for the first time, quantifies efficiency gains through streamlined processes of cross border investment funds."

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Euroclear and Clearstream enhance daytime bridge link

Euroclear and Clearstream enhance daytime bridge link

27 September 2006  |  7129 views  |  0 comments
Clearstream Services reports Luxembourg PKI deal

Clearstream Services reports Luxembourg PKI deal

31 July 2006  |  6050 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.aciworldwide.comvisit www.thomsonreuters.infovisit www.response.ncr.com

Top topics

Most viewed Most shared
Deutsche Bank paper hails 'huge' blockchain potentialDeutsche Bank paper hails 'huge' blockchai...
10177 views comments | 16 tweets | 25 linkedin
satelliteRipple completes XRP Lockup
9232 views comments | 3 tweets | 2 linkedin
PSD2: Laying the regulatory foundation for a new age in paymentsPSD2: Laying the regulatory foundation for...
8884 views comments | 17 tweets | 36 linkedin
Alior Bank to use Open API platform and accelerator to create fintech marketplaceAlior Bank to use Open API platform and ac...
7580 views comments | 20 tweets | 11 linkedin
Australian Government amends AML rules to cover digital currenciesAustralian Government amends AML rules to...
7203 views comments | 15 tweets | 24 linkedin

Featured job

Competitive
London, UK (or flexible)

Find your next job