Capita to use Calastone daily reconciliation service

Capita Financial Group, the wholly owned UK fund administrator subsidiary of FTSE 100 listed Capita, is to start using Calastone’s daily reconciliation service for its asset management transactions.

The move comes as demand for solutions to manage cross border flows of asset management information is increasing, even as the region struggles to manage data that is often outputted in different formats – often compliant to specific ISO standards on the Continent, but less so in the UK market, said Dan Llewellyn (pictured), managing director of European Business Development at Calastone, which provides a transaction network for the funds industry.

“We went through a sustained period of workshops with fund managers, distributors and third party administrators, to make sure we got the specifications right in respect of data for statements of holdings and statements of transactions.”

“What we wanted to ensure was interoperatbility between a UK distributor wanting UK centric reports, and maybe a UK distributor with exposure into Sicavs in Luxembourg, or funds domiciled in Dublin.”

The extensive work was required in order to ensure Calastone brought to market a cross border solution rather than one that was just applicable to the UK market, Llewellyn said.

Regulations for UK business have thus far demanded monthly reconciliation of accounts, intended to ensure accountability and safety of funds held on behalf of clients. Capita said that adopting daily reconciliation will not only build on existing service levels, but also provide a better platform for handling future regulatory changes.

Specific advantages for users such as Capita include the ability to get away from having to manually process bespoke reports, and instead move towards a core output process that is impoved through automation, Llewellyn said.

And by using Calastone as a condiuit for differently formated information, it means, for example, the Swift and ISO standardised data often used in markets such as Luxembourg can be passed on to UK distributors more easily, Llewellyn added.

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