There were no new participants and transfer volumes were lower than the previous quarter; we normally see volumes drop off over the summer following the tax year end peak volumes. The support for electronic transfers remains high with 88% of fund managers (by FUM), 80% of advisor platforms (by AUA) and 70% of D2C/Direct execution platforms (by AUA).
There has been progress in a number of other areas related to increasing the adoption of automated electronic transfers. Q3 is the first quarter in which TeX SLAs data has been available, this new and more comprehensive data is currently showing that the average time to complete an ISA transfers electronically is between 5 to 6 working days. TeX has also released the new open Pension Transfer Declaration - designed to be incorporated into member transfer agreements. This very impressive piece of work from Pinsent Masons is free to use with no contractual commitments, you don’t even have to be a TeX member to use it. To download the wording Pension Transfers Declaration go to:
Some great things to come out of the third quarter:
- 14 of the top 20 advisor platforms are supporting electronic transfers representing over 80% of AUA (7 using the Altus Transfer Gateway or 68% of AUA).
- The top 11 D2C platforms are supporting live electronic transfers covering an estimated 73% of AUA on D2C platforms (10 using the Altus Transfer Gateway).
- 11 Wealth Managers and Private Banks now support electronic transfers (7 using the Altus Transfer Gateway).
- 70 fund managers representing 88% of UK FUM are supporting electronic transfers and re-registrations.
- Average electronic in-specie ISA transfers are completing within 6 working days.
What can we expect as 2015 comes to a close?
We will see continued progress in the Transfers and Re-registration market with the following developments:
- The latest version of the Transfers market practice (version 2.2) to go live at the end of November, improving support for wider range of assets and wrappers.
- A number of the remaining Advisor Platforms will go live supporting electronic transfers taking the coverage to over 90% of AUA of Advisor Platforms
- Release of the new version of the Altus Transfer Gateway (ATG) providing support for the latest market practice standards, enhanced support for manual (non-electronic) transfers and workflow.