Capita Financial Administrators becomes first UK fund administrator to achieve straight-through-processing______

Capita Financial Administrators today announces the implementation of Calastone’s settlement, matching and reconciliations functionality, giving full straight through processing (STP) from deal placement through to settlement.

Capita Financial Administrators is the first third party administrator in the UK to offer a complete end-to-end STP solution for investors. Distributors placing STP fund instructions into Capita’s investment manager delegates’ funds will be able to settle their trades and get automated daily reporting of their transactions and holdings via Calastone. Both Capita Financial Administrators and the investor will be able to see their settlement exposure in advance thus significantly reducing their liquidity risk.

Capita Financial Administrators has also taken the next step of taking all settlement matched files into their back office systems, automatically triggering payments resulting in true STP processes.

In addition, following consultation with fund distributors and platforms, the Capita Financial Administrators’ trade processing system has been designed to provide daily transaction reports and Group 1 and Group 2 holdings reports.

Commenting on the announcement, Alexander Hofmann, Sales Director of Calastone, said: “We are delighted that Capita Financial Administrators is the first UK fund administrator to implement STP from deal placement through to settlement, thus setting a precedent for other fund providers. They can look forward to immediately benefitting from reduced costs, improved efficiency and the substantial removal of risk.”

Chris Addenbrooke, Chief Executive Officer at Capita Financial Managers Limited, said: “Following success of our dealing STP initiative – with automated dealing rates now reaching 70%, we are working on implementing STP across our entire business. The implementation of the Calastone settlement and reconciliation modules forms an important part of that process.”

Adam Kneen, Head of Investment Operations at AXA Isle of Man Limited, said: “We look forward to using the Calastone reconciliation service for all our transactions with Capita and are very keen to make significant use of this service with as many fund administrators as possible during 2012.”

For media enquiries, contact:

Julia Streets / Abby Munson
Streets Consulting
+44 (0)20 7959 2235

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