Calastone, the leading independent transaction network for the global funds industry, has successfully completed full testing on the first platform to platform re-registration solution in the UK and is set to make the service available for all its existing clients. This new service will ultimately enable Isa and other portfolio transfers on the same day.
Calastone completed testing through the Nucleus and Transact platforms; with the transfer of ownership done on a fund administered by third party provider, BNY Mellon.
The successful completion of this testing means that all participants can now benefit from a light touch IS020022 compliant solution to transfer wrapped and unwrapped unit holdings.
Jeff Spence, wrap operations director for Nucleus Financial Group, said: “We are delighted to have validated Calastone’s take to market re-registration solution. While providing Nucleus with operational benefits, this solution will ultimately allow the end client to move assets quickly and cleanly between ceding and acquiring parties.”
Ian Taylor, managing director at Transact commented: “We are delighted at how well the live testing of this new automated re-registration service has gone. At last a fully automated in specie transfer solution is in sight. This will help provide Transact, our advisers and their investor clients with cleaner and faster transfers.”
Dan Llewellyn, managing director of Calastone, commented: “Under the RDR proposals, it will be compulsory for platforms to offer re-registration by 31 December 2012, and we are providing the investment management industry with the ability to do just that. The fact that throughout the testing process, Calastone has been supported by a number of market leading organisations in addition to the ones mentioned above reflects the importance of this technological breakthrough for both the industry and the end investor.” Calastone has been testing its re-registration service in recent months supported by wrap providers, fund supermarkets, global custodians, private client wealth brokers, fund managers and Third Party administrators.
Llewellyn added: “The successful completion of testing and launch of this service represents a huge step for the industry in meeting the increasing regulatory demands around the RDR, we are now seeing a real proactive approach by market participants to automate this process.”
Alex Hofmann, sales director at Calastone commented: “We have kept to our promise to deliver a solution for re-registration. To date, the market has just witnessed the movement of test data, so this development is significant for a number of reasons. Calastone has now achieved the first movement of legal title in units, via an electronic medium built specifically for re-registration, for its clients. Additionally, we have ensured that our service is multi-domicile – our solution for the UK market can also be used by our clients that are involved in the cross-border market. Moreover, Calastone has ensured that our clients can use the service immediately, with zero development cost. This was an important factor, given there are still many unknowns surrounding the outcome of RDR.”
Hofmann added: “We are fortunate to have a proactive client-base that is always pressing us to deliver new services that help automate their business processes. Obviously, this is just the start. Electronic re-registration has now been proven and we are keen to expand the service to other asset classes and to clients both in the UK and in other domiciles. We would like to thank the testing participants in making this happen.”
Julia Streets / Abby Munson
Streets Consulting
+44 (0)20 7959 2235
