Howard Finnegan
Transfer and Re-registration Market Update
Written by Howard Finnegan on
we have seen almost universal adoption among adviser and D2C platforms and fund managers.

It’s hard to believe it is 3 years since the implementation of RDR, some would suggest there were not many positives to come out of such a major regulatory shift.  One positive is the success of the electronic transfer and re-registration.  In three short years we have seen almost universal adoption among adviser and D2C platforms and fund managers. The open industry transfer standards have rapidly evolved to facilitate speedy transfers of entire client portfolios incorporating a wider range of wrappers (GIAs, ISAs, Pensions) and asset classes (funds, equities, cash and other assets). 

In the last quarter of 2015, and indeed throughout 2015, we continued to see steady progress with some new participants and increasing adoption among the D2C / execution only stockbrokers, wealth managers and custodians.  The overall volume of transfers dropped slightly, despite an increase in the number of participants.  However, when the dramatic drop in the number of rejected transfers is taken into account, the actual volume of successfully completed electronic transfers increased slightly.

The main highlights of the fourth quarter of 2015 were:

  • 15 of the top 20 advisor platforms are live with electronic transfers representing almost 90% of AUA (8 using the Altus Transfer Gateway or 67% of AUA).
  • 11 of the top D2C / execution only stockbrokers are now live with electronic transfers covering over 65% of AUA on D2C platforms (10 using the Altus Transfer Gateway).
  • 12 of the Wealth Managers are now supporting electronic transfers (7 using the Altus Transfer Gateway).
  • 67 fund managers representing almost 90% of UK FUM are supporting electronic re-registration of funds.
  • Majority of client portfolios transferring within 6 working days, many completing within just a few minutes.

So, what can we expect for 2016?;

  • The remaining one or two of the major advisor platforms will begin supporting electronic transfers and re-registration.
  • Continued growth adoption of electronic transfers among the D2C and execution only stock brokers including some new big brand entrants.
  • A significant increase in adoption and acceptance among wealth managers and private banks.
  • A growing number of participants supporting UKFMPG version 2.2 of the transfer standards.

There are further opportunities to development the UKFMPG transfer standards to address the following challenges;

  • In-specie pension transfers. We recently released a briefing paper with details of some research into the demand, complexities of the supply chain and solutions to support in-specie pension transfers.  
  • Cash ISA to Stocks & Shares ISA transfers. Since the equalisation of ISA allowances there’s been a steady rise in demand to automate the process.
  • Junior ISA and the transfers-in from Child Trust Funds is another area of growing demand.

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