During the first six months of 2017 there was a slight increase (close to 2%) in the volume of electronic transfers and re-registrations, despite a significant increase in the number of industry participants. This would suggest the overall volume of account/portfolio transfers and asset re-registrations dropped slightly when compared with the same period last year.
The total number of counter parties now supporting electronic transfers increased from 160 to 181. The majority of the new participants were among the Wealth Management and D2CPlatforms/Execution Only Stockbrokers sectors of the market.
The highlights of the electronic transfers market during H1 2017 were:
- 181 Organisations across the Adviser and D2C/Execution Only Platforms, Wealth Managers, Fund managers and custodians are now supporting the open transfer standards.
- 17 of the top 20 Adviser platforms accounting for 89% of AUA on Adviser platforms are supporting electronic transfers (10 using the Altus Transfer Gateway (ATG) representing 65% market share by AUA).
- 27 of the leading D2C platforms and execution only Stockbrokers are now supporting electronic transfers, representing 92% of AUA on Direct platforms (22 using ATG, 89% market share by AUA).
- 29 of the leading Wealth Managers and Private Banks now support electronic transfers; this area saw the biggest increase in the last six months (23 are using the Altus Transfer Gateway).
- 96 Fund Managers, representing almost 84.6% of FUM in UK Retail and Institutional funds, are now supporting electronic in-specie re-registration.
- Five vendors supporting two versions of the open transfer standards are all successfully interoperating with one another.
There has been a number of other developments so far in 2017 that will have an impact on the electronic transfer market. The first is the decision by the TeX membership to mandate all participants support the latest version of the open transfer standards by 2019. Currently, there are two supported versions of the transfer standards, v1.1 and v3.0. TeX members voted to mandate all participants support v3.1 in 2019.
The cross industry group Transfers and Re-registrations Industry Group (TRIG), in response to intervention by the FCA, have been consulting on the wider challenges and disparities of transferring clients, their wrappers (Pensions, ISAs, GIAs, etc) and the underlying assets across the different industry sectors. The results of the consultation and recommendations have been delayed due Government bodies, including the FCA, going into purdah during the election campaign and the aftermath. We expect TRIG to publish the final result and recommendations in the coming weeks and for them to support the multi-vendor open standards approach across the industry sectors.