Some 40 London-based jobs at Swisscanto Funds Centre (SFCL) will be transferred to post-trade services provider Clearstream, following a deal announced earlier this week.
Clearstream is buying SFCL from Zurcher Kantonalbank and the funds platform will become a wholly owned subsidiary of Clearstream.
Zurcher Kantonalbank will remain a main distribution partner.
A long-term contractual agreement was also reached with two subsidiaries of Zürcher Kantonalbank - Swisscanto Fund Management Company and Swisscanto Asset Management International - to continue as large fund providers for the company.
Clearstream has been building its funds offering in recent years including with the 2014 acquisition of Citco Global Securities Services that gave Clearstream hedge fund operational capabilities.
The Swisscanto deal allows Clearstream to expand services in the funds space with management of distribution contracts and data processing.
A spokesperson for Clearstream said: “Distributor banks are looking for support in the areas of data, suitability, know-your-customer/anti-money laundering (and) trailer fee services. They expect these services to be integrated in other banking services as well.”
Clearstream expects there to be consolidation amongst specialised intermediaries/platforms in the fund distribution chain supporting large distribution banks.
The transaction for an undisclosed sum said to be in tens of millions of euros is expected to close within the third quarter of 2018, subject to regulatory approval.
Clearstream has €13 trillion in assets under custody.
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