NICSA 2004 BNP Paribas Supporting Funds Distributors

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NICSA 2004BNP Paribas - Supporting Funds
Distributors

• Tony Solway - February 2004

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Agenda

• The funds distribution model today
• Steps being taken to improve the environment

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The funds distribution model today

• In international markets the predominant
  structure is based around European UCITS funds
  distributed in multiple markets
• Specialist funds often remain offshore
• Funds outside of Europe are often local feeder
  funds with local transfer agents

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A full range of investor services
Over 600 Clients across Europe

• Retail and Distribution Support Services
• Central Transfer Agent
• Local Transfer Agent
• Funds Distribution Support
• Performance Measurement Compliance Monitoring
• Reporting via the internet
• Wrap Products administration

IRELAND
UK
GERMANY
BELGIUM
JERSEY
LUXEMBOURG
FRANCE
ITALY
SPAIN
Unique European Market Coverage
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European Proposition
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Global/local distribution support models
Various order transmission channels
Client A
Client A
Intermediary A
Client B
Client B
Special File Formats
Special File Formats
_at_PBLink
_at_PBLink
Fax instructions
Intermediary B
Client C
Client C
Intermediary C
Flexibility of the operational approach
BPSS
Global Approach
Global Approach
Central TA
Central TA
Local Approach
Local Approach
Registrar
Registrar
BPSS
BPSS
Local Offices
Local Offices
LTA
LTA
Intermediary D
Client D
Client D
Intermediary E
Client E
Client E
France
Germany
Italy
Spain
Client F
Client F
Intermediary X
Local coverage of all major Continental European
countries and international (also via feeder
funds)
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Outside of Europe BP2S acts as the concentrator,
relieving the funds promoter of the burden of
distribution activity
North America
UK/Europe
Japan/Far East
Funds Promoter
BNP Paribas
Third Party Administrators
European TA Infrastructure
Singapore Local TA
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The distribution model is complicated by the
emergence of aggregation platforms and
institutional custody type services

• Traditional TA type service still prevails
• But aggregation platforms and institutional
  investors are increasingly using CSDs (such as
  Euroclear and Clearstream) to provide DVP for big
  ticket deals
• Reconciliation of the two models is complex,
  risky and costly
• Investor transparency to promoter is removed

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Global/Local strategy - Competitive advantages

• Local Expertise
• In-depth experience of local-market regulations,
  structures and legal/tax requirements
• Relationship and representation with local market
  authorities and committees, regulatory bodies and
  fiscal administrations
• European Approach
• Strategy built around Role as Central TA in
  Dublin, Luxembourg, Jersey, UK LTA in all major
  European markets
• A system development plan and strategy for
  integrated systems throughout Europe
• International Investor Services offer in
  Luxembourg, Ireland, UK Jersey, France, Spain,
  Italy, Belgium and Germany

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Key initiatives to improve the situation

• Institutional business and aggregated business
• the growing use of central depositories to
  provide DVP and safekeeping
• New SWIFT message standards
• Retail business
• ????