Tougher FCA rules on electronic re-registration of platform assets looks set to be avoided after figures published today indicate a reduction in re-reg times.
In 2011 Tisa launched its Tisa Exchange initiative, introducing minimum standards for re-reg between platforms that signed up to the agreement. In response to pressure from the FCA, most large platforms have signed up.
Data published today by technology firm Altus shows 99 per cent of transfers between those platforms are now taking place within two days.
Altus and Tisa began collecting data in December. Initial figures showed more than 30 per cent of re-reg activity was not meeting the two-day timeframe.
The FCA had threatened to introduce prescriptive rules on re-reg if the industry failed to show improvement.
Altus head of marketing Howard Finnegan says: “Overall, we are optimistic about the steady progress we have seen in the first part of the year, although unfortunately many of the non-advised platforms and providers have been a little slow to adopt electronic transfers. Many of the direct-to-consumer providers use custodians/intermediaries and are currently waiting for their custodians to implement the new market practice before they can fully benefit from the electronic process.”
Altus says the TeX agreement now covers 80 per cent of the advised platform market by assets under administration. Transact is the largest platform which has not signed up to the standards.
Altus adds the number of electronic re-registrations increased 20 per cent in Q1, which it attributes to the increasing volume of assets coming on to platform and the end of the tax year.