Capita Financial Group, a major player in the UK funds industry is joining the Central Facility for Funds (CFF), Clearstream's innovative post trade solution for investment funds.
Last October, the UK became the fifth market in Europe (after Luxembourg, Belgium, Ireland and Switzerland) to open up to CFF. CFF was launched in March 2007 initially for investment funds domiciled in Luxembourg, the largest market in Europe for international funds. Today, CFF counts 44 members and offers access to more than 35,000 fund classes. Altogether, 73 UK funds houses are already available on Clearstream Investment Funds Services platform, which includes Vestima+ in addition to CFF.
CFF offers all participating transfer agents(1), fund distributors and fund promoters one single set of settlement and payment instructions for all eligible funds which accelerates and simplifies operational processes as well as reduces risks. CFF provides post trade services, with an architecture open to the various order execution processes and is fully integrated with Clearstream's existing ICSD custody and settlement services. This allows CFF participants to keep their funds holdings on the same custody platform as the one already used for other share classes.
Clearstream designed CFF as an answer to growing market demand in Europe and in Luxembourg. The Funds industry has grown 80% since 2005 but its post trade area is still characterized by high fragmentation, little standardization and thus operational risk. According to a study by Deloitte, a consultancy, the cross border investment funds industry could save up to 30% of processing costs and gain over € 300 million by streamlining the processes of cross border mutual funds distribution.
Philippe Seyll, Head of Investment Funds services, Clearstream said "We are very pleased that Capita, who is a major player in the UK fund industry has joined CFF. With Capita, Clearstream Investment Funds Services give access to most of the UK regularly subscribed Investment funds.We strongly believe that the fund industry should benefit from the same efficient processes available for other asset classes and look forward to continue providing these processes to all market participants".
Chris Addenbrooke, Chief Executive Officer, Capita Financial Group said: "Capita Financial Group has been at the forefront of the UK investment fund administration industry since its inception. Our current and extensive client portfolio reflects our expertise in the market as well as showcasing our successful approach to building strong client relationships for the long term. In recent years, we have extended our expertise to other jurisdictions outside of the UK, tailoring services to the demands of our fund management clients and each area's unique regulatory environment. Joining CFF will allow us to be more cost effective and offer an enhanced service to our clients and their distributors."
(1) Transfer agents are banks or financial institutions that keep the register for a fund promoter of the individuals and entities that own fund shares of this promoter's fund.