Page 6 - FundTech Spring 2019
P. 6


                                                    NORTHERN TRUST
                         NOW KNOWN AS LUKKA
                         Crypto fund administration   US-BASED ASSET SERVICER Northern   in 2017 and was awarded four US
                         technology and data services   Trust has developed its private equity   patents in 2018. Its latest addition
                         vendor Libra is to rebrand under   administration blockchain to incorporate   was developed with the help of legal
                         the name Lukka.            legal clauses in smart contracts. The   technology start-up Avvoka.
                          The new name is a reference   move, which it claims is an industry first,   The news has been welcomed in
                         to the Renaissance-era     allows participants to negotiate, review
                         mathematician Luca Pacioli,   and digitally sign contracts.  “IT’S A VERY
                         widely seen as the father of   Northern Trust was able to capitalise
                         modern accounting.         on a legal change in Guernsey whereby   SIGNIFICANT STEP
                          The company is also looking   the legal effect of smart contracts is   TOWARDS THE
                         to expand its back and middle-  officially recognised. The client involved   FUTURE DIGITAL
                         office platform for crypto assets   in the maiden deployment was Emerald
                         to include reference data and   Technology Ventures, a Guernsey-based   ENVIRONMENT
                         preview of pricing products.  venture capital firm that has funds   OF SECURITIES
                          “As the world of          administered on its blockchain.  SERVICING.”
                         cryptocurrencies evolves into   “The ability to leverage digital
                         crypto assets and tokenisation,   documents that include smart contract
                         our solutions must also expand in   code across multiple platforms is a very   Guernsey. Tom Carey, partner at law
                         their ability to make blockchain-  significant step toward the future digital   firm Carey Olsen, said the technology
                         based data work with existing   environment of securities servicing,”   “will not only speed up the contract
                         business practices,” said Jake   said Pete Cherecwich, Northern   negotiation process but will also allow
                         Benson, Lukka’s chief executive   Trust’s president of corporate and   for a much greater automation and
                         and founder.               institutional services. The firm launched   transparency of the fund’s legal and
                                                    its blockchain for private equity funds   contractual requirements”.

                       BUSINESS CLOSURE
                       ABM AMRO EXITS ROBO-ADVISER MARKET                          BREWIN DOLPHIN BUY
                                                                                   SWAPS LEGACY FOR AVALOQ

                       DUTCH FIRM ABN AMRO has                                     UK wealth manager Brewin
                       announced the closure of its online                         Dolphin has selected Avaloq’s
                       wealth management business Prospery                         software to underpin its digital
                       in Germany citing a failure to attract                      transformation project and
                       sufficient clients.                                         overhaul of its back-office
                        Prospery was launched in November                          systems. The replacement of its
                       2017 and made available to clients with                     legacy systems is designed to
                       more than €200,000 in capital, offering                     boost its digital credentials in the
                       an aggregated view of assets, active                        increasingly competitive wealth
                       investment management and financial   investments,” stated the bank. “ABN   management sector. The deal is
                       planning advice. The absence of a   Amro has therefore decided to   one of several struck by Avaloq
                       distribution channel made it difficult to   discontinue Prospery in its current   with UK wealth managers,
                       attract clients, resulting in a customer   shape. The lessons learned and the   including Smith & Williamson,
                       base that fell below expectations.   technology will be re-used in the   Coutts and Canaccord Genuity
                        “Growing the number of clients   Netherlands. Clients will not be affected   Wealth Management.
                       would involve significant additional   financially by this change.”

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