During the fourth quarter of 2014 we continued to see growth and improvements in almost all aspects of the adoption and execution of electronic transfers. More 'live' participants overall volumes increased by 12% over the previous quarter, a dramatic reduction in the number of rejections and, as a direct result average completion times reduced dramatically to under 6 working days.
At the end of December 2014 there were 106 TeX members supporting live electronic transfers and re-registrations, covering over 80% of AUA on advisor platforms and 90% of UK funds managers with FUM. The number of D2C platforms and Wealth Managers supporting live transfers continued to increase, we estimate over 60% of AUA on D2C platforms can now be transfered electronically. The ability to electronically transfer entire client portfolios (equities, funds, cash) and automate the interactions with custodians has radically improved customer experiences for D2C platforms and Wealth Managers.
The main highlights of the fourth quarter of 2014 were:
- 14 of the top 20 advisor platforms are live with electronic transfers representing over 80% of AUA (7 using the Altus Transfer Gateway or 68% of AUA).
- The top 7 D2C platforms are now executing live electronic transfers covering over 60% of AUA on D2C platforms (5 using Altus Transfer Gateway).
- 7 Wealth Managers are now supporting electronic transfers (4 using Altus Transfer Gateway).
- 67 fund managers representing almost 90% of UK FUM are supporting electronic transfers and re-registrations.
- Over 1 million transfer messages were sent over SWIFT during 2014.
- Volumes continue to increase with a 12% increase over Q3 2014.
- Majority of client portfolios transferring within 6 working days, many completing within just a few minutes.
During 2015 we expect to see continued growth of the Transfers and Re-registration market and predict the follow developments;
- The remaining major advisor platforms will begin supporting electronic transfers and re-registration, representing over 90% of AUA.
- Continued growth of electronic transfers and re-registrations among the D2C platforms and execution only brokers to levels similar to that of the advisor platform market.
- A number of the cross border fund platforms in Europe will begin electronic re-registration to support UK distribution.
- Significant growth in the use of open transfer standards to speed up the pension transfer process driven by the new pension freedoms, TeX’s focus on promoting open standards for pension transfers and the DWP’s automatic pot follows member initiative.
- Continued development of the open standards through the UKFMPG, ISO 20022 and SWIFT.