Howard Finnegan
Transfers Market Update Q2 2016
Written by Howard Finnegan on
There was a significant increase in the volumes of electronic transfers in Q2 - over 20%.

There was also an increase in the number of organisations supporting the open standard electronic transfers with a number of key new participants.  The increase in volumes was not entirely due to the new platforms, providers and custodians now supporting electronic transfers, as the transfer activity levels peaked in the lead up to the Brexit vote.  However, the increase may have more to do with the RDR Sunset (no more trail) in April than voting to leave the EU.

The number of counterparties now supporting electronic transfers increased in the quarter, with close to 130 organisations now listed on the TeX register.  We’ve continued to see transfer times fall; over the entire quarter over 90% of electronic in-specie GIA and ISA transfers between electronic counterparties completed within 3 working days!

The highlights of the electronic transfers market during Q2 2016 were;

  • Over 20% increase in electronic transfer volumes over Q1.
  • All top 10 adviser platforms are now supporting electronic transfers. This includes 17 of the top 20 representing 92% of AUA on adviser platforms (9 using the Altus Transfer Gateway representing 62% market share based on AUA).
  • 20 of the leading D2C Platforms and execution only stockbrokers are now live with electronic transfers covering about 80% or more of AUA on D2C platforms (15 using the Altus Transfer Gateway representing 90% market share based on AUA).
  • 14 Wealth Managers and Private Banks are now supporting electronic transfers (9 using the Altus Transfer Gateway).
  • 91 fund managers representing almost 83% of FUM in UK Retail and Institutional funds are supporting electronic re-registration.
  • Over 90% of in-specie ISA transfers between electronic counterparties are completing within 3 working days, many completing within minutes.
  • The scope of the new version of the transfer standards (version 3.1) has been agreed, it includes support for automating the transfer of Junior ISAs, Lifetime ISAs and Innovative Finance ISAs.  However, this version of the transfer standards will not be in place until late 2017.

So what can we expect to see during the second half of 2016;

  • The big event will be the move to version 3.0 of the transfer standards at the end of November.  It is a mandatory upgrade for participants currently supporting version 2.2 and a number of vendors and participants are using the date to move from version 1.1 directly to version 3.0.  This will widen the scope and coverage of wrappers and assets classes and ultimately deliver a better, quicker, cheaper transfer experience to clients.
  • We will see the continued growth in adoption of the electronic transfer standards among the D2C/execution only providers and wealth managers.

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