Tisa is seeking to address delays in the electronic re-registration of platform assets caused by high transfer rejection rates.
The FCA last year called on the industry to implement a re-reg process to ensure Isa and general investment account assets are transferred within a “reasonable” timeframe. But experts say transfers are still being held up where attempts to move assets are rejected by platforms.
IFDS group executive and Tisa wrap and platform chair David Moffat says: “The problem is the discovery message platforms send has a very prescriptive format. If it states the client’s name or the nominee slightly incorrectly, there will be a bounce-back message.
“We are aware some platforms are getting higher than expected bounce-back messages. This is being addressed. It is being discussed by the Tisa UK market practice group to try and pass these through without getting an error back.”
Novia head of institutional business David Field says: “Although electronic re-reg is certainly more efficient than paper and is of benefit to the client, it has not yet produced the level of efficiency the industry would like to see. In some cases, rejections are happening because a single data item such as a postcode is not matched correctly. That takes time to resolve.
“There can also be difficulties because although we have agreed with fund groups to move assets automatically, not all platforms have those agreements in place with all fund managers.”
Altus director Ben Cocks adds: “There has been an upturn in rejections. It is caused by more companies automating end-to-end. Once they are automated end-to-end, the information sent has to be a bit more precise because systems need data to match exactly.”