FNZ, a leading provider of transaction and custody services to the global wealth management platform industry, with £ 45 billion in assets under administration, has signed a strategic partnership agreement with the central custodian of UK securities, Euroclear UK & Ireland (EUI).
Under the agreement, FNZ will integrate its fund settlement process with EUI to enhance clearing counterparty protection for its clients and reduce operational risk through improved end-to-end automation of the settlement process for managed funds. .
In the UK, FNZ powers wealth management platforms for a significant portion of the market, including Standard Life, AXA, Zurich, Friends Life, Close Brothers, JPMorgan Asset Management and HSBC.
Christopher James, Managing Director, Wealth Services at FNZ, said: “This agreement transforms the UK funds market, where FNZ is the leading provider of fund transaction and custody services in the platform industry, to the delivery versus payment which has been around for many years in the North American fund market and for equities in the UK market. UK platform providers. ”
Katrina Sartorius, Director and Head of Product Management for Euroclear UK & Ireland, said: “We are delighted to partner with FNZ, a leading provider of leading edge transaction and custody services to the institutional fund industries. and wealth management platforms. We are committed to supporting their current and future growth by ensuring that FNZ and their customers benefit from the efficiencies and reductions in risk that can only be achieved through scale and end-to-end automation. settlement in cash and in shares.
FNZ joins twelve of the UK’s largest fund managers, including M&G, Invesco, Schroders and Hendersons, in choosing Euroclear UK & Ireland as their investment fund services provider. By the end of the first quarter of 2014, more than 50% of orders routed through the EUI order router will be able to be settled through the CSD’s investment fund service.
Fund orders from institutional firms and IFAs can be routed using technology providers, such as FNZ, to Euroclear UK & Ireland’s order routing and settlement service, which electronically interfaces with the transfer agents and fund managers they serve.