Following regulatory approval, leading insurer Zurich is establishing its own Authorised Corporate Director (ACD), to be known as Zurich Investment Services UK (ZISUK).
The announcement reflects Zurich’s commitment to developing compelling solutions for advisers and their customers. The company had signalled its intent to evolve its presence in the investment space, and this development further expands Zurich’s existing comprehensive range of investment options.
As an ACD, ZISUK will be able to market its own funds, subject to regulatory approval. However, it will not directly manage funds and Zurich is therefore not establishing an investment arm. Instead, ZISUK will be a true multi-manager ACD, selecting the best fund manager to partner with for each fund, or range of funds that it launches. It has appointed Northern Trust to provide transfer agency, fund accounting, custody and depositary services.
Gary Shaughnessy, Chief Executive of Zurich UK Life said:
“We regularly assess the most efficient and effective way of structuring our approach to providing investment solutions. The creation of our own ACD is an important step for us and will be essential to ensuring the smooth running, compliance and quality of service around funds.
We are committed to delivering outcomes that advisers and their clients expect and need, especially against the backdrop of the recent reforms to the market. The creation of ZISUK means we have greater control over delivering the best possible investment service to our customers at the lowest possible price”.
"We are delighted to extend our existing relationship with Zurich and be selected to provide this innovative solution,” said Wilson Leech, Head of Northern Trust in Europe, Middle East and Africa. “As the market continues to evolve, we see an increasing demand for flexible solutions that can support unique risk profiles and market requirements. At Northern Trust, we work closely with our clients to offer specialist fund administration services that support their unique objectives.”
Having secured ACD status, Zurich will be launching its first range of funds, subject to regulatory approval, in Q1 2015, and we will provide more details over the next few weeks.
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