Transparency in fund distribution
The twin regulatory requirements of greater transparency and asset segregation create tough challenges for distributors, fund managers and their asset servicers. The ability of processing models based on a single pool of assets - traditionally viewed as the key to operating efficiency in bonds and equities - is increasingly being questioned and as such, is looking less and less suitable.
The holistic solution
What's required is an holistic solution that uses a segregated account system stretching from the beginning to the end of the fund lifecycle with in-built compliance checks at every stage.
When built out from a dedicated fund infrastructure - as Euroclear has done - the holistic fund processing solution delivers the segregation that market participants are increasingly looking for. As importantly, it provides the transparency that regulators are demanding.