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Price is right for EMX

The industry has long fantasised about an electronic messaging system that

could be used by everyone. Back copies of the trade papers are full of

stories about new electronic systems, failed initiatives, pipe dreams and

some success stories too.

When Autif took the lead in the investment fund arena, it was the green

light for co-operation between fund management houses and IFAs. EMX went

live on June 12 this year.

EMX Co (a subsidiary of Autif) deliberately chose to consult with the

industry, which some might consider to be a fairly radical departure.

EMX canvassed the opinions and requirements of all the interested parties

and built those requirements into the system. It continued to carry the

support of all the sponsor companies, “borrowed” resources from wherever it

could and kept its word to the industry.

The result is a system which arrived on time – under budget – which is

easy to use, which works and which has received the approval of the

providers, advisers and the Government.

At the moment, there is a cost to pay. The sponsor companies have paid for

this multi-million-pound development and advisers are being asked to pay to

use it. But there are choices. IFAS can access the system:

Through a web browser.

Through a consolidator or a fund supermarket.

Through a direct hub link.

Many IFAs have already indicated that they will conduct their business

through a consolidator such as a network or a software provider where

massive economies of scale can be achieved.

Any cost would normally be agreed with the consolidator and, in the case

of networks, EMX anticipates that it will be marketed by the networks as an

additional service in their range such as compliance, commission-chasing

and training.

EMX is currently speaking to six organisations which would be natural EMX

consolidators for the IFA community.

IFAs should also balance out any cost with a number of very attractive


The speed of the service they can now offer their clients means that they

can buy and sell units (for free) and supply portfolio valuations in a

timely manner.

The introduction of EMX means that fund supermarkets are no longer the

exclusive territory of providers. E-dealing reduces costs and low-margin

products such as stakeholder pensions and Isas become attractive business


There is also the elimination of paperwork which electronic dealing provides.

I would also like to make clear that all costs associated with the system

are under review. The more that advisers and management houses use the

system, the more the system will deliver in cost savings – and the more

that management houses will be able to pass on in the way of savings to

IFAs and IFAs to their customers. It was always intended to be a symbiotic


Having developed the system with the consultation of the entire industry

and created a messaging service that is universally agreed to meet

everyone&#39s needs – on time and under budget – we are confident that we will

meet the industry&#39s stiff criteria and become the messaging system of


For anyone who wants to know more about the benefits that the EMX system

can deliver, the website addressis


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