Written by Howard Finnegan on Monday 3 August 2015
During the second quarter of 2015 the use of electronic transfers and re-registrations continued to grow steadily. There was an increase in the overall volume of transfers completed electronically and an increase in the number of live participants. The growth in adoption is concentrated among the D2C/Execution only and Wealth Management communities.
At the end of June 2015 there were 112 TeX members supporting live electronic transfers and re-registrations, covering over 80% of AUA on advisor platforms and 88% of UK funds managers FUM. An estimated 70% of AUA on D2C platforms can now be transferred electronically. As the number of platforms and Wealth Managers supporting version 2.1 of the open transfer standards increases we’ve seen an upsurge in the number of equity transfers being automated. We’ve also seen electronic transfers being used to support bulk movement of assets between custodians.
Opening up the world of pension transfers has also progressed. Following the DWP’s selection of the open standards framework to support the Pot-Follows-Member initiative, a sub-group was established to agree extension to the standards to facilitate the ‘pot matching’ part of the process. This group has made great progress in a short period of time and the draft standards is due to be published in July 2015.
The main highlights of the second quarter of 2015 were:
- 14 of the top 20 advisor platforms are live with electronic transfers representing over 80% of AUA (7 using the Altus Transfer Gateway or 68% of AUA).
- The top 11 D2C platforms are now executing live electronic transfers covering an estimated 73% of AUA on D2C platforms (10 using the Altus Transfer Gateway).
- 11 Wealth Managers and Private Banks are now supporting electronic transfers (7 using the Altus Transfer Gateway).
- 70 fund managers representing 88% of UK FUM are supporting electronic transfers and re-registrations.
- Draft standards for DWP Pot-Follow-Member ‘pot matching’ published.
- Majority of client portfolios transferring within 6 working days, many completing within just a few minutes.
During the remainder of 2015 we expect to see continued growth of the Transfers and Re-registration market and predict the follow:
- The remaining major advisor platforms will begin supporting the electronic transfers and re-registration, representing over 90% of AUA.
- Significant growth among the existing and new entrants in the D2C platforms and execution only brokers, to levels similar to that of the advisor platform market.
- Continued growth of adoption of electronic transfers among the major Wealth Managers and Private Banks.
- Significant growth in the use of open transfer standards to speed up the pension transfer process in support the new pension freedoms and the DWP’s decision to adopt the standard to support Pot-Follows-Member.
If you would like further details, including a list of participants, copies of the Pot-Follows-Member ‘pot matching’ draft standard or any aspect of the Transfers and Re-registration adoption and use in the UK please contact firstname.lastname@example.org.