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Altus research reveals 50 per cent market coverage in electronic transfer market

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The number of platforms and fund managers supporting live electronic transfers and fund re-registrations has reached a new high with over 50 per cent market coverage, according to statistics released by Altus.

 
The research reveals that the number of completed transfers using the electronic messaging has increased exponentially month on month between April and June this year. At the end of June seven platforms representing 53 per cent of the assets under administration (AUA) and 24 fund managers representing 61 per cent of UK funds under management (FUM) were operating electronic account transfers and fund re-registrations. 
 
All the live transfer participants are using the open interoperable standards based on the UK Funds Market Practice Group’s (UKFMPG) Transfers market practice, ISO 20022/SWIFT messaging, and all are operating within the TISA Exchange (TeX) legal framework, vindication that open industry collaborations can deliver benefit to consumers.  
 
Based on the number of its other major clients going through the implementation process, Altus claims that by the end of summer over 80 per cent of platforms by AUA and 85 per cent of UK fund managers by FUM will be operating live electronic transfers.
 
Altus transfers, where all the counter parties are using automated electronic processing, are taking between two and six working days, well within the TeX Service Levels which came into force on 1 July for TeX members, and five times faster than paper based transfers.
 
Ben Cocks, products director at Altus, says: “The result of our research is very positive news for the industry and particularly for the end consumer.  We been working with our clients and other transfer solution providers to ensure open interoperable standard combined with a cross industry contract club can deliver game changing efficiency savings and outcomes.  The whole automated re-registration initiative, led by TISA, is shaping up to be one, if not the, RDR success story and a reference model for other parts of the industry.”
 
Edward Glyn, head of funds EMEA at SWIFT, says: “This is a good example of using open standards and the SWIFT network to drive down costs and improve customer outcomes.  We applaud the work that Altus and other organisations have done in designing and delivering cross industry solutions to automate complex financial transactions. The growth of the use of these messages over SWIFT demonstrates a solid commitment by the industry to radically improve service for the retail client.”
 

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