Note: This announcement, originally published on 1 October 2024, has been updated to add information on transfer reporting with register account details and a new report titled “Fund List with TA register accounts”. Changes have been highlighted.
Clearstream Fund Centre (CFCL)1 informs clients that, effective
18 November 2024
it will be enhancing the processing of investment funds transfers.
These improvements will significantly increase transparency and reduce the need for clients to contact CFCL. CFCL's objective is to advance end-to-end automation and improve settlement cycles, ensuring a smoother and a more efficient experience for all clients.
Simplified transfers where the counterparty is also a CFCL client
Current process
Transfers between two CFCL accounts currently have different instruction requirements based on whether the fund is restricted (settling on the Transfer Agent’s register) or unrestricted (settling on the secondary market within CFCL). For restricted funds, clients must provide external settlement details to their counterparty and instruct using their external details to ensure correct settlement.
New process
Clients can now instruct transfers in a single format for mutual fund transfers between two CFCL accounts, regardless of whether an ISIN is restricted or unrestricted. Clients can simply provide their CFCL account details to their counterparty for correct settlement. Clients should take note that this change does not apply to common or domestic depositories.
Instruction format
To ensure correct routing, instructions must be formatted as follows, with only a single party required on the instruction:
Swift
MT540
MT542
:16R:SETPRTY
:16R:SETPRTY
:95R::DEAG/CEDE/XXXXXa
:95R::REAG/CEDE/XXXXXa
:16S:SETPRTY
:16S:SETPRTY
a. Where “XXXXX” is the client counterparty’s account in CFCL.
Summary
If the client’s counterparty has an account with CFCL, they no longer need to determine whether the fund is restricted to instruct a transfer. Clients should mention their CFCL counterparty account in DEAG/REAG, eliminating the need to fill in BUYR/SELL.
Enhanced transfer reporting with register account details
The following reports will be enriched with Transfer Agent’s register account details.
For the two reports listed below, the reason narrative field will include the Register Account ID (for example: “Swift instruction has been sent to the Transfer Agent”. Please ensure your counterparty is in place if required. Please provide register account XXXXX to the counterparty”):
MT537 Pending Transaction Report (available as Swift ISO or CSV file): A daily report of pending primary market transfers, including the latest status and updates.
Transfer Report MT548: Clients can subscribe to this report to receive a Swift update every time the settlement status of a transfer instruction is updated (updates can be found in field :70D:).
For the three reports, as of 17 February 2025 listed below, two new columns (“Register Account Name” and “Register Account”) will be added as the last columns:
Vestima - OI Statement of Transfer Aggregated (Vestima and VestimaPRIME);
Vestima - OI Statement of Transfers Vestima;
Vestima - OI Statement of Transfers VestimaPRIME.
Clients should contact their Relationship Manager if they wish to subscribe to these reports.
Trading availability check enhancements
For VestimaPRIME funds, when running an eligibility check in Vestima Trading availability check, the result will now display the Register Account Name and Register Account ID when available and if clients hold a position in the fund.
New Fund List with TA register accounts
As from 17 February 2025, a new report titled “Fund List with TA register accounts” will be available for all Vestima clients (on request).
This report will list all the ISINs for which a TA register account has been opened in the market for the specific CFCL account, along with the related register account name and number.
The report will be generated daily in CSV format and will be accessible via the Vestima browser or Xact File Transfer.
Clients can schedule the report at participant level, deciding for which CFCL accounts under the same participant the report should be scheduled.
Clients should note that the presence of the ISIN and related TA account in the report does not prevent dormant accounts. CFCL recommends always performing an eligibility check in the Trading availability check (in Vestima) before any transfer-in or subscription.
Trading availability check enhancements
For VestimaPRIME funds, when running an eligibility check in Vestima Trading availability check, the result will now display the Register Account Name and Register Account ID when available and if clients hold a position in the fund.
Further information
Further information is available from your dedicated Relationship Manager or CFCL’s Client Services teams:
CFCL
Vestima Client Services
Email:
csvestima@clearstream.com
Telephone:
+352-243-32833
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1. CFCL refers to Clearstream Fund Centre S.A. registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-261691.
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