Howard Finnegan
Transfers and Re-registrations Market Update - H1 2019
Written by Howard Finnegan on
There are now 320 counterparties across the savings and investment supply chain supporting electronic transfers and asset re-registrations.

The first half of 2019 saw a steady increase in the number of organisations supporting electronic transfers and re-registrations under the TeX legal framework and the UK Electronic Transfers and Re-registration Group’s open technical standards (UKETRG). 

There are now 320 counterparties across the savings and investment supply chain supporting electronic transfers and asset re-registrations, up from 308 at the beginning of the year. 

Market Coverage

The Advisor platforms and Fund Managers market sectors have now achieved almost universal coverage, with over 95% coverage (based on AUA) now supporting electronic transfers.  The increase in the number of Wealth Managers and Private Clients counterparties continues, with more in the pipeline during the second half of 2019.

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

24 Adviser Platforms, representing 99.1% of AUA, support electronic transfers.
  • All the top 20 Adviser Platforms support electronic transfers.
  • 19 Adviser Platforms support the latest version (v3.0) of the transfer standards representing 87% of AUA.
  • 12 Adviser Platforms use the Altus Transfer Gateway (ATG) or 61% of AUA.
26 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, the same 22 use ATG.
21 Adviser Own/White Label Platforms.
  • All support v3.0 of the transfer standards.
  • 19 are using ATG.
72 Wealth Managers and Private Clients/Bank support open electronic transfers.
  • 70 support v3.0 of the transfer standards.
  • 67 are using ATG.
6 Custodians/Intermediate Unit Holders support electronic re-registration.
  • 5 use ATG.
156 Fund Managers, representing 96% 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

There was an increase in the number of counterparties supporting V3.0 of the TeX/UKETRG open transfer standards, as more vendors upgraded their systems in readiness for the mandatory upgrade to V3.2 of the standards in November this year.   We also continue to see an increase in the number of organisations going through the process of bridging the TeX/UKTERG and BACS Cash ISA worlds to dramatically speed up the transfers between Cash Deposit ISAs and Stocks & Shares ISAs. 

What we can expect for the rest of 2019?

The mandatory upgrade of the transfer standards to version 3.2 in November is currently the main focus for the industry.  Interoperability testing among the vendors is progressing well, and new capabilities brought by V3.2, including share class conversions, Pension transfers and a range of other enhancements, will come in a very timely fashion given the FCA Platform Market Policy Paper expected later this year. 

The second half of the year will see a wave of new participants from the Wealth Management and D2C/Execution Only providers.  The UKETRG has also being working hard on the next set of encashments to the transfer standards for next year. These include foreign exchange traded assets and additional share class conversion capabilities. 

We will cover all these and more at our next Altus Transfer Gateway (ATG) User Group meeting on 1st October 2019. All are welcome to attend.

Infographic - market update first half of 2019

 

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