KBC joins Clearstream Fund Centre distribution network
Belgium-based KBC has signed up to Clearstream’s Fund Centre to consolidate all its distribution support-related activities with Clearstream. A long-standing customer of Clearstream’s Vestima fund processing platform, KBC will expand its collaboration to cover the full range of services around distribution support and commission management.
Using Clearstream Fund Centre services, KBC not only benefits from reduced internal costs associated with the collection of trailer fees, but also from optimised effective payment.
Clearstream Fund Centre services cover a full range of fund distribution support services built on the strong expertise and global network of asset managers. The platform supports fund distributors and asset managers for compliance-based KYD processes and to comply with latest regulatory challenges around fund distribution, such as MiFID II in the European Union.
Olivier De Bruyn, Head of Network Management at KBC, said: “Implementing a one-stop shop by using Clearstream Fund Centre creates strong financial benefits through higher net trailer fees and operational benefits through timely and predictable trailer fee payments. Moreover, the overall new fee schedule regarding third-party fund processing is a real plus and demonstrates the benefits of the one-stop shop concept. Given the increase in operational efficiency, the improvement of scalability and the financial advantages, it was a no-brainer decision to change to Clearstream as our new provider regarding trailer fee processing.”
Philippe Seyll, CEO at Clearstream Banking S.A. and Head of Investment Fund Services, added: “We are delighted to welcome KBC to our network of distribution partners. KBC will benefit from streamlined processes around contract negotiation and commission management, which will allow the company to foster efficiencies for underlying clients and scale their investment fund business.”
About KBC
KBC is one of the leading financial groups in Europe. It is a multi-channel bank-insurance group with a geographic focus on Europe, catering mainly to retail clients, SMEs and local midcaps. The group occupies significant, and in many cases leading positions in its core markets of Belgium, Czech Republic, Bulgaria, Hungary and Slovakia. The KBC group has also selectively established a presence in a number of other countries and regions around the world.
KBC Group employs around 41.000 staff and caters for about 12 million clients in its core markets. KBC Group NV is listed on Euronext Brussels.
About Clearstream
As an international central securities depository (ICSD), headquartered in Luxembourg, Clearstream, which is part of Deutsche Börse Group, provides the post-trade infrastructure for the Eurobond market and services for securities from 59 domestic markets worldwide. With 16 trillion Euros in assets under custody, Clearstream is one of the world’s largest settlement and custody firms for domestic and international securities.
Alongside its highly automated mutual fund services, Clearstream provides clients with a “one-stop shop” solution for all fund types. The Fund Centre offering complements Vestima to include distribution support services and to provide direct access to a fund research solution.