Transact has chosen fund transaction network Calastone to provide its automated re-registration service, a proposition which Calstone says moves the platform market closer to same day re-reg.
The regulator requires platforms to offer re-reg, though it does not require that the process is automated. Not all platforms have automatic transfer capability, which is said to have caused delays in transferring from platforms such as Fidelity FundsNetwork and Cofunds.
The Calastone service allows the transfer of legal title in fund units between nominees, and provides straight-through processing for in-specie transfers of assets.
Advisers, platforms and fund managers can also use the service to check the progress of the transfer.
Transact managing director Ian Taylor says: “Calastone has worked with different sectors of the market in order to deliver a product that is effective, easy to use and enables market participants to communicate with each other in order to automate the processes of re-registration.
“We welcome the fact that someone has delivered a cost effective system that can transfer legal title in seconds. This can only be a good thing for the end investor.”
Calastone managing director for product Dan Llewellyn says: “We are very grateful for the support of Transact which is one of our key customers, and are fortunate to have such a proactive client base that is always pressing us to deliver new services to help automate business processes.
“Electronic re-registration has been proven and we are keen to expand the service to other customers in the UK and other domiciles.”
Calastone plans to extend its automated re-reg service to other assets such as equities, pensions, bonds and Sipps.