With the UK financial services industry set to embrace re-registration of assets across platforms by 2013, there are several challenges ahead over the next couple of years.

The current re-registration process is complex and time-consuming and moving assets can take months. In addition, a number of providers will not transfer investments in-specie; meaning some investors have to sell their investments and transfer cash to new providers, exposing them to out-of-market risk.

There are also a range of complications linked to industry collaboration, including defining a commonly understood set of implementation systems and procedures. Software interoperability presents another challenge; products and systems must link to re-registration messaging interfaces smoothly to avoid disrupting the re-registration process.

Technology can play a major part in meeting these challenges. Some of the leading solutions available enable the transfer of a broad range of assets and wrappers, providing a common, cross-industry system for re-registration. In addition, elite systems can exceed the 11-day Service Level Agreement (SLA) turn-around set out by TISA, taking under twenty-four hours to complete the process.

Integrating technology platforms can have multiple benefits. Key motivations for the industry are clear:

  • Greater efficiency – improved scalability of operations and reduced costs, resulting in greater profitability for players and lower costs to investors;
  • Reduced operational risk – through the replacement of manual re-keying of orders by straight-through processing;
  • Enhanced service – through improved response times and standardised interfaces.

As the 2013 re-registration deadline approaches, fund managers and platforms need to make critical decisions now.

What are your views – have you engaged technology to smooth the re-registration transition?

About the author

Tony Klim

Chief Executive Officer and Managing Director

Based in London, Tony Klim has over 29 years of experience in international financial services and has held a number of executive and board positions with private and listed companies focused on technology and outsourcing in support of the international financial services market. He has extensive experience in mergers and acquisitions, and in a previous role he sponsored the acquisition of a leading United Kingdom financial intermediary portal, the Exchange. Over the years, Tony has been involved in the development of new products and services targeted at the independent financial adviser community. Prior to joining Bravura in February 2008 as the CEO for EMEA, Tony was a strategic consultant in the financial services sector. He has specialised in growth businesses, and internet banking and payment systems. His track record includes a number of strategic advisory and management roles for major international banks, life companies and technology businesses.

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