Howard Finnegan
Transfer and Re-registration Market Update – Q3 2018
Written by Howard Finnegan on
With over 260 counterparties now supporting the TeX legal /UKETRG open transfer standards, coverage across adviser platforms, D2C and Execution Only Platforms is almost universal.

In the last six months we have seen a substantial increase in the number of counterparties supporting open standards transfers and re-registrations (TeX/UKETRG). With over 50 new participants, this represents an increase of almost 24%!  Some of this increase can be attributed to ACDs and outsource providers registering their client brands individually, but we have also seen new participant organisations.

Despite the well-publicised issues associated with several the re-platform projects, we have also seen the average time to complete account/portfolio transfers between electronically enabled counterparties continue to fall. 

Market Coverage

With over 260 counterparties now supporting the TeX legal /UKETRG open transfer standards, coverage across adviser platforms, D2C and Execution Only Platforms is almost universal.  Growth in the number of Wealth Managers/Private Clients participants continues with some notable new comers.

Market Update Infographic - Q3 2018

Here is a summary of the coverage in the main market segments:

22 Adviser Platforms, representing 97.5% of AUA, support electronic transfers.

  • All the top 20 Adviser Platforms support electronic transfers.
  • 14 Adviser Platforms support the latest version (v3.0) of the transfer standards representing 67% of AUA.
  • 12 Adviser Platforms use the Altus Transfer Gateway (ATG) or 59% of AUA.

27 D2C Platforms and Execution Only Brokers support electronic transfers.

  • 9 of the top 10 D2C providers support electronic Transfers.
  • 22 support V3.0 of the transfer standards, 22 use ATG.

54 Wealth Managers and Private Banks support open electronic transfers.

  • 49 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.

154 Fund Managers, representing 89% of FUM of UK retail funds, now support electronic re-registration.

  • Almost all readily available UK retail funds can be re-registered electronically.

Other notable developments

We have explained in a number of blogs how fragmented the world of electronic transfers still is. Banks and Building Societies have their own electronic transfer service, run by BACS, to transfer Cash deposit ISAs/JISAs between themselves.  We recently released a connector to this ISA/JISA transfer service, and Altus Transfer Gateway users can now transfer Cash Deposit ISAs/JISAs held at over 60 of the major Banks and Building Societies to Stocks and Shares ISAs/JISAs on an Investment platform completely electronically within a few days.

What we can expect in the coming months

In the run up to the major changes to the transfer standards next year we expect to see an increase in number of participants supporting version 3.0 of the transfer standards (full transfers).  There are also a number of the new outsource providers and custodians due to go live with electronic transfers which will facilitate another big increase in electronic transfer participants.

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