Howard Finnegan
Transfers and Re-registrations Market Update - Q4 2018
Written by Howard Finnegan on
308 counterparties across the savings and investment supply chain now support electronic transfers and asset re-registrations.

By the end of 2018 the number of organisations supporting open standards electronic transfers and asset re-registrations reached a new milestone, with 308 counterparties across the savings and investment supply chain supporting electronic transfers and asset re-registrations. This 63% increase over the past year was spread across all sectors, with significant increases in the number of Wealth Managers, Fund Managers and Adviser own or white labelled Platforms supporting electronic transfers.

In the latter half of the 2018, once the well-publicised re-platforming projects began to settle down, we saw the time to complete ISA and GIA transfers continue to fall. More details on volumes and completion time will follow in a future blog.

Market Coverage

Market Coverage by sectors

The Adviser platforms and Fund Managers market sectors have now achieved almost universal coverage, with over 90% coverage (based on AUA) now supporting electronic transfers. There’s also been a substantial increase in the number of Wealth Managers and Private Clients counterparties. A lot of this growth is driven by several key outsource administrators and custodians providing electronic transfers on behalf of their clients. This has also led to a big increase in the number of Adviser own name or white label counterparties now supporting the TeX/UKETRG electronic transfers, so much so, we’ve decided to introduce a separate market sector specifically for them.

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

23 Adviser Platforms, representing 98.5% of AUA, support electronic transfers.

  • All the top 20 Adviser Platforms support electronic transfers.
  • 17 Adviser Platforms support the latest version (v3.0) of the transfer standards representing 74% of AUA.
  • 12 Adviser Platforms use the Altus Transfer Gateway (ATG) or 61% of AUA.

23 D2C Platforms and Execution Only Brokers support electronic transfers.

  • 9 of the top 10 D2C providers support electronic Transfers.
  • 21 support V3.0 of the transfer standards, the same 21 use ATG.

27 Adviser own/White Label Platforms support electronic transfers.

  • 27 support v3.0 of the transfer standards.
  • 24 are using ATG.

61 Wealth Managers and Private Banks support open electronic transfers.

  • 56 support v3.0 of the transfer standards.
  • 56 are using ATG.

5 Custodians/Intermediate Unit Holders support electronic re-registration.

  • 4 use ATG.

153 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

Probably one the most significant developments in the last year was the linking of the TeX/UKETRG and BACS Cash ISA transfer worlds to enable the electronic transfer of Cash Deposit ISAs held with most Banks and Building Societies to Stocks and Shares ISAs held on a platform or directly. Clients using this capability can now transfer Cash ISAs electronically in three to four days, no paper or wet signature involved. Breaking down the barriers between closed or proprietary transfer systems and promoting a more open standards based interoperable world will continue to be our focus in 2019.

What we can expect in 2019?

The biggest event and some might say challenge the UK electronic transfer market faces in 2019 is the mandatory upgrade of the transfer standards to version 3.2 in November. The new standards bring a host of enhanced capabilities, not least the ability to convert share classes as part of the transfer process. Those upgrading from v1.1 of standards to v3.2 may face significant challenges, that’s why we expect to see many upgrades to v3.0 first in preparation for the November upgrade.

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