Howard Finnegan
Transfer and Re-registration Market Update – First Quarter 2018
Written by Howard Finnegan on
The end of 2017 saw continued growth in the number of counterparties supporting the open electronic transfer standards (TeX/UKETRG), and a dramatic increase in the volume of ISA and GIA transfers.

The end of 2017 saw continued growth in the number of counterparties supporting the open electronic transfer standards (TeX/UKETRG), and a dramatic increase in the volume of ISA and GIA transfers.  This trend tailed off a little during the first quarter of 2018, which suggests that the disturbance resulting from recent re-platforming activity is continuing to impact transfer volumes. 

Market Coverage

The number of organisations supporting the TeX legal framework and open standards transfers has broken the 200-barrier, with almost universal coverage in the adviser platforms, D2C and Execution Only Platforms. There has been a significant increase in the number of Wealth Managers/Private Clients participants during the first quarter of the year, mainly driven by outsourcers going live with multiple clients.

The following is a summary of the coverage in the main market segments:

  • 20 Adviser Platforms, representing 94% of AUA, support electronic transfers
    • 19 of the top 20 Adviser Platforms support electronic transfers
    • 12 Adviser Platforms support the latest version (v3.0) of the transfer standards, representing 63% of AUA
    • 11 Adviser Platforms use the Altus Transfer Gateway (ATG) or 55% of AUA
  •  24 D2C Platforms and Execution Only Brokers support electronic transfers
    • 9 of the top 10 D2C providers support electronic Transfers
    • 19 support V3.0 of the transfer standards, 20 use ATG
  • 54 Wealth Managers and Private Banks support open electronic transfers
    • 48 support v3.0 of the transfer standards the same 48 are using ATG.
  • 5 Custodians/Intermediate Unit Holders support electronic re-registration
    • 4 use ATG
  • 93 Fund Managers represent 88% of FUM of UK retail funds now support electronic re-registration.
    • Almost all readily available UK retail funds can be re-registered electronically.


Transfer Volumes

The volumes of ISA and GIA transfers in the first quarter of 2018 were almost double the volumes of the same period in 2017 (94% increase).  However, they were 15% below the volumes during the last quarter of 2017.  As discussed in my previous blog, the dramatic increase in transfer volumes has been driven by a series of platform Migration (re-platforming). These changes had less impact in the first quarter of 2018, which explains the reduction in volumes.

What can we expect for the rest of the year ?

There are a number of significant platform migrations still planned in the coming months. We anticipate that the disruption these projects will cause, alongside a continued increase in the number of market participants, will drive an increase in transfer volumes. 

The Transfers and Re-registration Group (TRIG) are due to publish some further details on a number of their recommendations, and we hope they will address the thorny issue of interoperability: we have three electronic transfer solutions across the UK’s savings and investment industry that do not interoperate.  For more information on this fragmented transfer landscape have a look at my article.

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