Post-trade services provider Clearstream is expanding the know-your-distributor (KYD) offering of its Fund Centre platform in an effort to help asset managers meet their regulatory requirements.
The digital solution is supported by Clearstream’s partnership with ume, a KYD platform that connects investment managers with thousands of distributors across 90 countries.
The new offering enables asset managers to have 24-hour access to the KYD information from all or pre-selected distribution partners connected to Clearstream’s Fund Centre.
Currently, asset managers are required to perform initial and ongoing due diligence on their distribution partners to ensure compliance with regulations.
Investment funds may only be sold by financial institutions that have implemented an adequate anti-money laundering and counter terrorist financing sanction programme, and through suitable distribution channels that are recommended to an appropriate and pre-defined range of investors.
Bernard Tancré, CEO of Clearstream Fund Centre, says: “Our Fund Centre is now able to offer an extended KYD due diligence service providing a look-through view on the distribution partners connected to the Fund Centre.”
Laurent Denayer, CEO of ume comments: “The partnership with Clearstream will further enhance our position as the leading platform for exchanging due diligence information between asset managers and fund distributors. The new users will further increase the network effects and bring significant added value to all participants.”
