The overall volume of electronic transfers rose by close to 10%, over the first quarter of 2014 and number of live participants rose slightly. At the end of the quarter around 83% of AUA on adviser platforms and 91% of FUM are now supporting electronic Transfer and Re-registration using the ISO 20022/SWIFT based standards and the TeX legal framework.
We’ve seen a significant rise in the volumes of rejections during the quarter, mainly due to a system changes at one of the TA outsourcers to enable new STP capability with more rigid validation rules. Working with The TA and our clients we’ve managed to get more of the relevant standing data correct the rejections rates have begun to fall towards the end of the quarter. The more positive side of the TAs move to STP is that most transfers and fund re-registrations with that TA complete within minutes or hours at the most.
The main highlights of the first quarter were:
- Volumes continue to increase with nearly a 10% increase over the first quarter 2014.
- 18 platforms and providers operate live electronic transfers, representing over 83% of AUA on advisor platforms (9 use the Altus Transfer Gateway, representing 65% market share based AUA on adviser platforms support live electronic transfers).
- 52 fund managers are now doing live electronic transfers, representing 91% of UK FUM.
- Many clients are now completing 75% of their account transfers and 90% of fund re-registrations electronically.
During the second half of 2014 we expect to see the first live pension transfers using the new open ISO 20022/SWIFT based standards and the TeX legal framework. We also expect to see a number of the key direct to consumer platforms and execution only providers start to support electronic Transfers and Re-registrations. Exciting times as we start the next phase of development of electronic transfers in the UK.