Press Release
For Release:
Immediately
Contacts:
Kristi Morrow, DTCC
Lisa Fong, Ryan Communication
Melissa Rowling, Greentarget
Audra Tiner, Articulate Comms
+1 617 880 6770
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+44 (0)20 7324 5490
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STUDY REVEALS INVESTMENT MANAGEMENT FIRMS FACE COSTLY DELAYS IN
TRADING DUE TO INEFFICIENT CLIENT DATA ACQUISITION, MAINTENANCE AND
DISTRIBUTION
TABB Group estimates medium- to large-sized investment managers are incurring over $6 million
per year in avoidable expenses; Utility solutions emerging as a key enabler to increase efficiency
New York/London/Hong Kong/Singapore, 14 September, 2016 – Clarient Global LLC
(“Clarient”), a joint venture established to transform client data and document management in the
financial services industry, today announced the results of a comprehensive research report published
by TABB Group, the international capital markets research and consulting firm. The new research
report reveals that cumbersome client data acquisition and onboarding processes, along with trading
delays due to missing or inaccurate client documentation, are top concerns for buy-side firms.
According to the study, 62 percent of respondents experience challenges gathering and maintaining
data from their clients, including the need to ask clients for additional documentation to ensure data
correctness and consistency for Anti-Money Laundering (AML) / Know Your Customer (KYC)
compliance. TABB Group’s research suggests that individual investment managers could avoid costs
of over $11,000 per onboarding by improving client data and document management processes.
In addition, the majority of firms reported delays in setting up trading relationships, such as the
configuration of new client, broker or custody accounts due to the weaknesses of their client data
management strategies. Estimates from TABB Group’s research suggest that the average annual cost
from trading and settlement delays is between $1.5 million and $2 million for each individual
investment manager.
Dayle Scher, Senior Analyst at TABB Group and author of the study, said, “It is apparent from the
findings that investment managers continue to face many challenges when it comes to managing
client and legal entity data. Much of that pain can be alleviated through the adoption of utility model
solutions, which can help firms to cope with increasing regulations and free them to focus on their
core competencies of managing investor portfolios.”
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Matthew Stauffer, CEO of Clarient Global LLC, said, “Asset managers are under significant pressure
to effectively onboard their own clients, while also responding to the changing and often redundant
demands of their banks and broker-dealer counterparties. As a result, we have seen over 100 buy-side
firms adopt Clarient Entity Hub in order to securely manage their entity data and documentation,
increase transparency and reduce the time required to be ready to trade on behalf of a client.”
Clarient Entity Hub simplifies client data and document management in a secure environment and
has been enhanced specifically to meet evolving buy-side needs with its recent product release. The
utility now provides the ability for investment managers to establish a permissioned Base
Relationship with banks, broker/dealers, and institutional clients to exchange and maintain a full
spectrum of legal entity data and documentation necessary to transact. Clarient leverages a global
policy engine to gather and validate legal entity data, categorize documents and confirm relationships
on behalf of investment managers. The utility minimizes the need to request information from the
client by supplementing the private exchange of data and evidence with public data from Clarient’s
Public KYC service.
In addition, buy-side users are now able to simply distribute NAV/AUM valuation data in a
structured way, store and link subordinate mandate or sub-fund information, and take advantage
newly implemented “maker checker” operational controls to ensure data privacy.
- End Note to Editor
The complete TABB Group research report entitled “Client Onboarding and Entity Data Processing:
Calculating the Value to the Buy-Side” is available for download on the Clarient website.
About Clarient Global LLC
Clarient Global LLC is a new DTCC company founded in collaboration with Barclays, BNY Mellon,
Credit Suisse, Goldman Sachs, JPMorgan Chase and State Street. Clarient Entity Hub acts as a
central hub for investment managers, hedge funds, and corporations to upload, securely store,
maintain and permission use of legal entity level information, documentation and ownership
information. It integrates technology and operational expertise to provide increased controls,
standardization, data quality and transparency during client on-boarding and ongoing client lifecycle
activities. Clarient was established in response to the industry’s call to reduce operational complexity
and to address regulatory requirements including Know Your Customer (KYC), Foreign Account Tax
Compliance Act (FATCA), European Market Infrastructure Regulation (EMIR), and Dodd-Frank
requirements. For more information, visit www.clarientglobal.com.
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