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Euroclear UK & Ireland welcomes Rathbones to automated fund settlement

London, 14 July 2014 – Rathbone Brothers Plc. (Rathbones), a leading provider of investment management services to private clients, charities and investment advisors, has taken a major step in automating its fund settlement process by using Euroclear UK & Ireland’s (EUI) investment fund service, effective immediately. EUI is the sole processing provider to offer end-to-end services for the settlement of fund units and applicable cash movements to the entire Rathbones distributor community.

John Trundle, Chief Executive Officer of Euroclear UK & Ireland, commented: “Rathbones is smart to move to automated transactions settlement with us. EUI’s delivery-versus-payment settlement means that cash movements related to subscriptions and redemptions are reflected on the register typically two hours after the notional units have exchanged hands electronically. By linking cash and unit settlement, firms can greatly improve their daily treasury operations; cash from proceeds is usually available between 6am and 8am on the intended settlement date and available for the entire business day. Rathbones avoids the risks, costs and reconciliation complications of manual cash processing when payments are decoupled from the unit movements.”

Andrew Butcher, Chief Operating Officer at Rathbones, said: “Euroclear UK & Ireland’s service for unit trusts makes perfect sense for us. It is fully scalable as we can integrate the processes with our UK equity settlements. We are custodian for GBP 22 billion of client assets, so having the benefit of full registry reconciliation transparency which automated settlement affords, plus easier cash management through the CREST cash memorandum account, will prove highly beneficial to our Operations teams."

Developed in partnership with 39 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, makes a fund held in the UK as easy to administer as any other EUI-eligible instrument.

Firms using the EUI service can see substantial cost savings and reductions in operational and counterparty risks. Trade-to-settlement cycles are cut typically to four business days after the trade is struck compared with up to 10 business days today. Unit movements and related cash debits and credits can be monitored in real time and reconciliation is automated.

Note to editors

About Rathbone Investment Management

Rathbone Investment Management is one of the UK’s largest and longest-established providers of high-quality, personalised discretionary investment services. It manages over £22.0 billion* of funds (as at 31 December 2013) for individuals, charities and trustees, and is part of Rathbone Brothers Plc, an independent company with a listing on the London Stock Exchange. Investment management services are offered in Aberdeen, Birmingham, Bristol, Cambridge, Chichester, Edinburgh, Exeter, Kendal, Liverpool, London, Lymington, Newcastle and Winchester.

*Includes funds managed by Rathbone Unit Trust Management.
www.rathbones.com

Rathbone Investment Management Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered office: Port of Liverpool Building, Pier Head, Liverpool L3 1NW. Registered in England No. 1448919. Rathbone Investment Management Limited is part of Rathbone Brothers Plc. Head office One Curzon Street, London W1J 5FB.

 

About Euroclear UK & Ireland

Euroclear UK & Ireland is the central securities depository (CSD) of the United Kingdom, Jersey, Guernsey and the Isle of Man for all domestic securities, and of Ireland for equities. It provides advanced, low-cost settlement facilities for a wide range of investment funds, corporate and government securities, and equities including those traded on the London Stock Exchange and Irish Stock Exchange.

Euroclear UK & Ireland’s investment funds service uses the CREST system for the settlement, reconciliation, transfer and corporate action events processing of mutual funds held in the UK and Ireland. It provides fund managers and platforms/distributors alike the ability to centrally manage their mutual funds holdings, giving real time balance information; the status of current, historical and future settlement transactions; the ability to transfer holdings between platforms/distributors using matched instructions; and to receive the out-turn of corporate action events.

Euroclear UK & Ireland is part of the Euroclear group, which also includes Euroclear Bank - which is rated AA+ by Fitch Ratings and AA by Standard & Poor’s - as well as Euroclear Belgium, Euroclear Finland, Euroclear France, Euroclear Nederland and Euroclear Sweden.

The Euroclear group settled the equivalent of EUR 572 trillion in securities transactions in 2013, representing 170 million domestic and cross-border transactions, and held almost EUR 24.2 trillion in assets for clients.

For more information please visit About us or follow us on Twitter @EuroclearGroup.

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