Electronic transfers and re-registrations continued to increase during the third quarter of 2014, both in terms of the number of participants and also the volume of transfers, according to Altus Business Systems.
Altus experts have reported two significant developments within the electronic transfer and re-registration market during the third quarter including the first pension transfers using ‘open standards’ under the TeX legal framework, as well as the first intermediate unit holders/custodians supporting electronic re-registrations.
Altus has also witnessed significant industry progress in terms of a substantial reduction in the volume of rejections. This has resulted in more transfers completing in a timely and efficient manner over the last few months.
The main highlights of the quarter were:
• 35 providers across adviser platforms, D2C, wealth managers and ISA plan managers are now participating;
• 14 of the top 20 adviser platforms are participating, covering over 80 per cent of AUA
• 7 D2C platform and wealth managers are now participating
• 14 ISA plan managers are now participating
• 62 fund managers representing almost 90 per cent of UK FUM are also participating
• The first pension transfers using V2.1 market practice and TeX legal framework took place
• The first electronic re-registrations involving custodians/intermediate took place
• Transfer volumes continue to increase and have risen by 10 per cent since Q2 2014.
Howard Finnegan, head of sales and marketing at Altus, says: “Towards the end of the year we predict that a number of the key direct to consumer platforms and execution only providers will start supporting electronic transfers and re-registrations. Additionally, and following the first live pension transfers using open standards, we also expect to see a steady rise in the number of overall pension transfer participants meaning the next few months should have plenty of exciting industry developments in store.”