Axa Investment Managers is working with BNP Paribas Securities Services (BNPPSS) to develop a “next-generation” fund distribution platform using blockchain.
The platform is to be called BNP Paribas Fund Link and Axa IM is collaborating with BNPPSS on the design phase of the project.
Fund Link will use blockchain and smart contract technology to facilitate the flow of information between fund buyers and sellers, said BNPPSS, adding that this could help with the regulatory demands created by MiFID II which requires more exchange of information.
One of the main aims is to speed up the onboarding process for fund buyers and asset managers. To do this, fund buyers will only have to upload their profile and investor onboarding documents once and then the information can be shared by fund managers on the platforms.
Joseph Pinto, chief operating officer at Axa IM, said he was excited to be working on the project, which will also try to improve how funds are bought and sold.
“Operational efficiency is a key area for us in an increasingly competitive market environment where pressure on fees keeps rising. We believe that the new technologies used by this platform can significantly enhance our fund distribution process and ensure we are well placed to meet the continued regulatory demand for increased transparency,” he said.
Jean Devambez, head of product and client solutions, asset and Fund Services, at BNPPSS, said the project would be open to other clients in the near future.
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