Cross-Border Distribution of UCITS

A CACEIS PRODUCT DEVELOPMENT PUBLICATION - 2011

FUND DISTRIBUTION MODELS & PLAYERS

2.3.2

Players specific to the CSD model

F inancial intermediary (D onneur d ’ ordres ) In France, most orders are placed by a financial intermediary, who is the custodian of the entity (end investor or investment manager, distributor or aggregator) for whom the order is being placed. The financial intermediary must be a Euroclear France member and is not required to identify the distributor or investor when placing an order. C entralising agent Funds distributed in France must appoint a centralising agent. The centralising agent acts as a central hub for receipt of subscription and redemption orders sent by financial interme- diaries, and controls that conditions mentioned in the fund prospectus relating to subscrip- tions and redemptions are respected. The centralising agent is also in charge of informing the fund management company, the fund administrator and the fund issuer account keeper of the total amount and/or number of shares/units collected for each fund. The centralising agent is therefore equivalent to the transfer agent in countries following the TA model, but does not maintain a register. F und issuer account keeper (G estionnaire du passif ) The fund issuer account keeper is appointed by the fund management company and is often performed by the same entity as the centralising agent in France. The role consists of updating the fund account open in its books to reflect the daily unit/shares subscriptions/redemptions and transfers, as well as reconciling positions with Euroclear France. The entity is also in charge of subscriptions/redemptions settlement, public and share- holder information and process concerning corporate actions. For funds not registered with Euroclear France, the fund issuer account keeper maintains a nominative shareholder register. CSD (C entral S ecurity D epository ) A CSD is an entity which holds securities and other assets in order that domestic transactions may be carried out for beneficial owners and settled by way of entries on its own books (e.g. Euroclear France). T ransfer agent /R egistrar The traditional services offered by the transfer agent are maintaining the register, transaction processing, settlement and shareholder reporting: • Updating fund accounts to reflect the daily unit sales and redemptions, switches, transfers and changes of registrations, • Ensuring prompt settlement of orders and provision of tax information to the investor and its intermediaries, • Calculation and payment of commissions, • Preparation and sending of order confirmations and the resulting cash account statements to the investor or its intermediary, • Responding to requests concerning securities account holdings and undertaking a control function, • Executing payments. Players specific to the TA model

2.3

2.3.3

As the fund industry is shaping itself as a global distribution model, in addition to the traditional services, the transfer agent is required to provide other added-value services.

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