Dubai: HSBC Securities Services (HSS) have launched Islamic securities services in association with HSBC Amanah, HSBC Group's global Islamic financial services division.
HSS services include fund accounting and administration, transfer agency services, global custody, sub-custody and clearing and corporate trust, as well as providing access to the entire range of products and services offered by the HSBC Group, including cash management and funding solutions.
HSS assets under custody are more than $5.6 trillion (Dh20.57 trillion) and global assets under administration are in excess of $2.5 trillion as of last December 31.
Sharia compliant securities services are now available globally to Islamic investment managers and traditional investment managers managing Islamic funds.
With the global rollout of Sharia compliant fund accounting and administration, global custody, transfer agency, banking and treasury services are now available in 17 markets across the Middle East, Asia-Pacific, Europe and the Americas.
Globally consistent
"While previously we serviced clients in a number of locations with locally implemented solutions, we now present a globally consistent offering," Arindam Das, regional head of HSBC Securities Services, Middle East and Africa told Gulf News.
"For asset managers who are increasingly looking to go international and distribute their products beyond their home markets, it is important that they have access to a consistent service proposition in as many countries as possible for their businesses."
The new global Islamic securities services offer end-to-end securities services proposition starting from the fund set up stage to legal documentation and other related processes, all in full compliance with Sharia rules.
"HSBC Amanah Securities Services' products have been certified by a team of Sharia scholars and are strictly aligned to Sharia principles," Das said.
"Assets are placed in a segregated account and not mingled with conventional assets. Overnight liquidity is managed using Islamic Liquidity Management tools — hence the excess of cash can be kept in a Sharia compliant manner.
"If required, trades can be settled on an actual basis versus contractual to keep in line with Sharia requirements. We even offer our customers assistance in calculating Zakat payments, which is an annual compulsory payment made to a charity."
Truly international
The availability of Islamic securities services at the global level is going to help both Islamic and conventional fund managers.
"Our client base is truly international," Das said. "As such, we see increasingly conventional managers looking into this space and targeting the Muslim population in their respective markets in Europe, Asia/Pacific and the Americas.
"Likewise, we see managers from Muslim markets expanding into the international markets by using fund domiciles such as Luxembourg, Ireland and Malta to reach out to a global investor base."
Services are targeted at fund managers, banks, family offices and high net worth investors. Although there are differences in expectations as to the extent of services they may need, they are generally looking for assistance in fund set-up, full administration, including accounting and valuation as well as transfer agency and of course all related custody and banking activities.
HSBC was the first international bank to offer custody services across the Middle East and North Africa (MENA) region. Over the past decade, HSS' MENA network has grown to cover ten markets in the region.
