Investec Wealth and Investment has adopted Euroclear UK & Ireland’s (EUI) automated settlement and custody service, CREST, for its UK investment fund flows. Euroclear helpfully explains that IW&I has thus extended distribution automation from order placement to now include full settlement of unit and related cash movements, as well as holdings reconciliation.
Judy Price, chief operating officer at Investec said: “Euroclear UK & Ireland’s investment fund service now allows us to process unit trust funds alongside other Crest-eligible asset classes. The decision to consolidate unit trust settlement with UK equity and gilt settlement using Euroclear introduces welcome automation and significantly boosts the operational controls and risk frameworks we have in place.”
Katrina Sartorius, head of product management at Euroclear UK & Ireland, said that extending operational efficiencies to the capital markets where it operates, while in parallel driving out as much risk as possible, is intrinsic to its role in the markets. “So, it is a very rewarding compliment and sign of trust for a CSD such as ours to be chosen by one of the country’s major financial institutions for their domestic flows,” she said.
Created in partnership with approximately 40 fund organisations, Euroclear UK & Ireland’s automated fund processing solution delivers end-to-end automation from the placing of a funds order, to the settlement, transfer, reconciliation and corporate action processing of the asset.
EUI says that firms using it enjoy major reduction in operational and counterparty risk, as well as decreasing costs. The UK CSD solution allows clients to benefit from a significant reduction in trade-to-settlement cycles. Unit movements and related cash debits and credits can be monitored in real time and reconciliation is automated.