Asset managers are required to perform initial and ongoing due diligence on their distribution partners to ensure compliance
Investment funds may only be sold:
- by financial institutions that have implemented an adequate Anti-Money Laundering (AML) and Counter Terrorist Financing (CTF)
sanction program, and
- through suitable distribution channels that are recommended to an appropriate and pre-defined range of investors.
Clearstream is enhancing its Fund Centre platform by expanding the KYD offering to help asset managers to fulfil their regulatory requirements: In addition to the KYD due diligence questionnaire and corporate KYD documents already provided by Clearstream Fund Centre AG (formerly “Fondcenter”) itself, asset managers will now also have the option to access the KYD information from all or pre-selected distribution partners connected to Fund Centre.
Digital KYD solution
In this context, Clearstream is proud to be able to offer with Fund Centre a centralised 24 hours access through a digital platform to the required KYD information. Additionally, a standardised KYD due diligence questionnaire is made available and updated on a yearly basis with direct input from asset managers and in accordance with industry standards and applicable regulations.
This digital solution is supported by our partnership with ume, a leading KYD platform. That partnership provides an open solution that can also be used by the Fund Centre participants to leverage the ume solutions for flows that are outside of the platform.
Bernard Tancré, and CEO of Clearstream Fund Centre AG, said: “Our Distribution Support platform Fund Centre is now able to offer an extended KYD due diligence service providing a look-through view on the distribution partners connected to Fund Centre.”
Laurent Denayer, CEO ume added: “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.”