Vestima Transfer Service: New centralised external transfer service for investment funds
Effective
1 January 2014
Clearstream Banking1 will offer the Vestima Transfer Service, a new service to facilitate free of payment transfers of CFF Qualified Investment Fund Shares (CFF Funds)2 to and from CBL via the register of the CFF Transfer Agent (TA).
The new service, which will be applicable to all customers, will enable customers to process transfers in a simple and efficient manner using the same preformatted instructions for all CFF Funds, regardless of the underlying TA.
Highlights of the new service
The Vestima Transfer Service will simplify fund transfers, offering the following benefits:
- A single fund market account (FMA01) for all CFF Funds instead of the TA’s individual FIA;
- Use of standard MT540 and MT542 settlement messages to initiate transfers;
- Uniform process for external transfers;
- Automatic alignment of requested settlement date with the transfer confirmation;
- Full integration with Clearstream Banking control processes;
- Choice of service level: Standard or Premium.
Transfers will be initiated based on a simple settlement instruction received from the customer. CBL will handle the complexity and diversity of the TA requirements.
Note: Internal transfers between two CBL customers will not be impacted by this enhancement.
Details of the new service
Instructions
To generate a transfer request to the TA, participants will need only to send a standard MT540 (receive) or MT542 (deliver) free of payment settlement instruction.
The settlement instruction should include, in the settlement party (the seller or the buyer) field as appropriate, the identification of the relevant investor delivering or receiving the CFF Fund to/from the CBL customer.
N.B.: CBL has no relationship with the counterparty of the transfer and it is the customer’s responsibility to ensure that their counterparty, in its capacity as transferor or transferee of the shares, performs all actions required to initiate the transfer of fund shares.
Once a transfer has been processed in the relevant register of shareholders, the TA will send a matching receipt/delivery settlement instruction as confirmation of the transfer.
If the TA’s instructed settlement date does not match the details in the customer’s instruction, CBL will amend the customer’s instruction accordingly: a cancellation (and subsequent re-instruction) will not be required.
Note: For information about settlement instructions, confirmations and reports, please refer to the CreationOnline User Guide and the Creation via SWIFT User Guide as appropriate.
Cancellations and amendments
Customers may want to cancel their transfer request by cancelling the settlement instruction that was used to initiate the transfer.
When CBL receives the cancellation, a cancellation request is sent to the TA.
The cancellation request will have pending status until the TA advises whether it was accepted or not. In general, once a transfer is processed in the relevant register of shareholders, it is deemed to be irrevocable.
In the event of a customer cancellation being rejected by the TA, CBL will generate a new settlement instruction on behalf of the customer to replace the one cancelled.
Fees
The processing of a transfer will be charged based on its complexity. Please refer to the Clearstream Banking International Fee Schedule valid from 1 November 2013 (to be published in due course).
Customers can also subscribe to a “Premium Service”, which includes additional service components such as a proactive follow-up of pending instructions and a daily report of such pending instructions with their respective status.
Further information
The connectivity documentation will be updated on launch date to reflect the Vestima Transfer Service.
For further information, customers may contact, as appropriate:
| Vestima Customer Service | |
| Email: | csvestima@clearstream.com |
| Telephone: | +352-243-32833 |
| Fax: | +352-243-632833 |
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1. Clearstream Banking refers to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg and registered with the Luxembourg Register of Commerce and Companies under number B-9248 (CBL). This information outlines services provided to customers of CBL and LuxCSD, not all of which are available to customers who hold accounts with Clearstream Banking AG, Frankfurt (CBF). Services and information that are available to CBF customers as well shall apply mutatis mutandis.
2. The new process will apply only to CFF Fund Shares, listed as Supported funds on the Clearstream website.
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