It’s fair to say it’s been a strange start to 2021 for electronic transfers. We have seen a drop in the number of participants but record volumes of transfers taking place. The drop in the number of live participants was primarily due to an outsource provider consolidating 30 or so brands into one. Combined with the amalgamation of some of the smaller Fund Managers, 34 participants dropped off the TeX register.
In the same period, 10 new counterparties started to support electronic transfers. This means that there are now 413 organisations supporting open standards based electronic transfers across the wealth and investment management value chain as at the end of March.
The new participants are major brands in the D2C/Execution Only and Pension Providers market segments. Here is a summary of the coverage in the main market segments:
27 Adviser Platforms, representing 99.3% of AUA, support electronic transfers.
- All the top 20 Adviser Platforms support electronic transfers.
- 19 Adviser Platforms (or 67% of AUA) use the Altus Transfer Gateway (ATG).
41 D2C Platforms and Execution Only Brokers support electronic transfers.
- All the top 10 D2C providers support electronic Transfers.
- 34 use the Altus Transfer Gateway (ATG).
81 Wealth Managers and Private Clients support electronic transfers.
- 91 use the Altus Transfer Gateway (ATG).
45 White Label/Family Office/Charities support electronic transfers.
- 40 use the Altus Transfer Gateway (ATG).
8 Custodians/Intermediate Unit Holders support electronic re-registration.
- 6 use the Altus Transfer Gateway (ATG).
187 Fund Managers support electronic re-registration.
- representing 95% of UK Retail Funds by FUM
- 41 (or 50% by FUM) use the Altus Transfer Gateway (ATG)
20 Pension Providers support open standards based electronic transfers and re-registration
- 12 use the Altus Transfer Gateway (ATG)
“Making Transfer Simpler” – what happens next?
The new FCA rules in response to its Policy Statement 19/29 ‘Making Transfers Simpler’ came into effect in February. One aspect of the new regulation requires platforms to facilitate share class conversions as part of a transfer. Over two months on, the new rules seem to have had a limited impact. we looked at five restricted share classes in very popular retails funds over February and March, and they were being still being encashed as part of a transfer, when they could be transferred in-specie with a conversion. We are running a virtual event on Tuesday 11th May on ‘Making Transfers Simpler’ in which we’ll publish more details on what we’re seeing across the market. For more information and to register, please click here.
New version of the transfer standards later this year
The other big market development for this year is the upgrade to the new version of the transfer standards. Not due until the end of October, this new version includes a whole series of enhancements including a significant expansion in the asset classes you can re-register electronically. Here’s something for us all to look forward to! Do not miss our webinar on this topic in June. More information will follow soon.
For more information or for the details of participating brands, please contact us