The second quarter of 2021 was very much a ‘steady as she goes’ in the world of electronic transfers and re-registrations. There was a slight increase in the number of live participants, and we only saw a small increase in the volume of transfers completed electronically in Q2 when compared to Q1 this year. This is unusual in its own right however, as Q1 is traditionally the highest volume quarter, mainly driven by Tax Year End activity. It does point to steady increase in the underlaying volume of transfers completed electronically.
In the same period five new counterparties started to support electronic transfers. This means that there are now 418 organisations supporting open standards based electronic transfers across the wealth and investment management value chain as at the end of June.
The new participants are major brands in the Wealth Management 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 68% 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).
84 Wealth Managers and Private Clients support electronic transfers.
- 79 use the Altus Transfer Gateway (ATG).
44 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).
189 Fund Managers support electronic re-registration.
- representing 96% of UK Retail Funds by FUM
- 44 (or 53% by FUM) use the Altus Transfer Gateway (ATG)
21 Pension Providers support open standards based electronic transfers and re-registration
- 13 use the Altus Transfer Gateway (ATG)
What can we look forward to in the second half of 2021?
The biggest development in the world of electronic transfers in the second half of this year is the TeX/UKETRG market practice upgrade on 31st October. The changes to the transfer standards will expand the range of asset classes to be re-registered electronically, along with support for Lifetime ISA and Innovative Finance ISA transfers, enhancements to the pension transfers and share class conversion support.
These are significant enhancements to the open transfer standards that will benefit everyone across the market, but participants will need to prepare properly to avoid any interruptions to their automated transfer processes. If you’d like to find out more about the changes you can watch the recent webinar we ran on the ATG development roadmap. We’ll be running a series of webinars and workshops on this topic in the coming months, so look out for the invitations.