We saw a 22% increase in the volume of transfers despite the number of participants increasing at a much smaller rate. This suggests transfer activity recovered from the historically low levels seen in the first half of 2016.
Probably the most significant development in the electronic transfers market during the last quarter of 2016 was the introduction of Version 3.0 of the UK Electronic Transfers and Re-registration Group (UKERTG) open and interoperable standards. This new version provides enhanced support for a wider range of account/wrapper types and asset classes and ultimately a better, faster, cost effective and all-encompassing services to clients.
The highlights of the electronic transfers market during Q4 2016 were:
- 22% increase in volume in the second half of 2016 over the first half.
- 160 organisations across the adviser and D2C/Execution Only Platforms, wealth managers, fund managers and custodians are now supporting the open transfer standards.
- 16 of the top 20 adviser platforms accounting for 87% of AUA on adviser platforms are supporting electronic (nine are using the Altus Transfer Gateway (ATG), representing 63.4% by AUA).
- 21 of the leading D2C and execution only brokers are now supporting electronic transfers representing 82% of AUA on direct platforms (16 using ATG, 92% of electronic market by AUA).
- 14 of the leading wealth managers and private banks now support electronic transfers (nine are using the Altus Transfer Gateway).
- 96 fund managers, representing almost 87% of FUM in UK Retail and Institutional Funds, are now supporting electronic in-specie re-registration.
- Five vendors supporting the open transfer standards all successfully interoperating with one another.
The time taken to complete client account transfers and asset re-registrations continues to fall. However, there is a distinct lack of publicly available information on transfer times; to redress this, we’ve been analysing the ammonised data from the ATG hosted service clients and will publish the information in the next few weeks.
So what can we expect during the first few months of 2017? We expect to see a wave of new participants from the wealth management and D2C sectors. The new enhanced features and capabilities Version 3.0 of the transfer standards are of particular relevance to these sectors.