LONDON–(BUSINESS WIRE)–Northern Trust (Nasdaq: NTRS) has entered into an agreement with finscape offer clients a global vision of their fund distribution activity. By streamlining the collection of market intelligence, the service – also called Finscape – aims to help address industry-wide challenges around data transparency.
As part of the agreement, Northern Trust will make Finscape available to its asset manager clients worldwide, enabling them to perform forensic analysis of the distribution, giving them access to valuable information to inform their sales strategy and help them meet regulatory requirements.
It also addresses the challenge for asset managers to identify investors in their funds where sales are made through a third-party fund distribution platform. In such cases, the transfer agency’s register indicates an agent position on behalf of the platform, potentially creating difficulties for the asset manager to easily identify the ultimate distributor in the investment “chain”.
Clive Bellows, Head of Global Fund Services, Europe, Middle East and Africa at Northern Trust, says, “This solution deploys cutting-edge technology to provide asset managers with a complete picture of their investors while reducing complexity and replacing inefficient reconciliation activities. Our agreement with Finscape reflects Northern Trust’s desire to help asset managers distribute their funds through our Whole Office approach, providing access to new technology and knowledge through the combination of our capabilities, networks and partnerships.
Bella Caridade-Ferreira, Co-CEO of Finscape, commented: “Fund distribution has become increasingly fragmented and complex, with a range of third parties that often sit between asset managers and their investors. We are delighted to work with Northern Trust to help its clients streamline their market information needs, improve transparency, save time and reduce costs.
Finscape’s solution aggregates information from distribution platforms, asset managers and granular advisor data available from the UK’s Financial Conduct Authority. The resulting data is constantly reconciled and enriched by Finscape’s proprietary business rules, forming a complete picture of the market and allowing contributors to analyze their own feeds against an aggregated view of their industry.
The service also helps clients meet regulatory requirements that asset managers must understand who their investors are and how their funds are sold. These obligations are included in the European Union’s MIFID II regulations, the Central Bank of Ireland’s Consultation Paper 86 and the requirements 18/698 of the Commission de Surveillance du Secteur Financier of Luxembourg.
Northern Trust’s Global Fund Services business provides fund administration, global custodial, custodian, investment operations outsourcing and revenue enhancement solutions to global investment managers, supporting a wide range of complex investment strategies across all asset classes.
Finscape is a joint venture between Fundscape, a leading fund research company, and financial services systems provider Altus. Altus software handles the majority of asset transfers between UK platforms and has been ISO 27001 accredited since 2017. For more details on our distribution intelligence service, visit finscape.co.uk.
About Northern Trust
Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of wealth management, asset servicing, asset management and banking services to businesses, institutions, affluent families and individuals. Founded in Chicago in 1889, Northern Trust has a global presence with offices in 22 US states and Washington, DC, and 23 locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of December 31, 2021, Northern Trust had assets under custody/administration of US$16.2 trillion and assets under management of US$1.6 trillion. For more than 130 years, Northern Trust has distinguished itself as an industry leader for its exceptional service, financial expertise, integrity and innovation. Please visit our website or follow us on Twitter.
Northern Trust Corporation, Head Office: 50 South La Salle Street, Chicago, Illinois 60603 USA, incorporated with limited liability in the USA Please read our global and regulatory information.
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