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Vendors: FCA will not mandate electronic re-reg

Llewellyn-Dan-Calastone-2013
Dan Llewellyn

Re-registration message vendors say the Financial Conduct Authority will not try to impose automatic re-registration between fund managers and platforms.

Speaking at the Tax Incentivised Savings Association Exchange conference in London last week, Calastone and Euroclear both said although the regulator has made it mandatory to allow in-specie transfers, it will not go as far as mandating an electronic process.

The FSA confirmed in its November 2010 consultation paper that re-registration should be compulsory, while Tisa set up a contract club to aid the process.

Automatic transfers can be completed within five days, while the manual process can take up to two weeks longer in some cases.

Auto transfers need messages to be transferred between platforms via a message vendor. Currently platforms can choose from four main vendors including Calastone, Altus, EMX and Origo. A number of platforms are yet to sign up to a message carrier.

Calastone European business development managing director Dan Llewellyn says: “I do not think the regulator will look to mandate automatic, electronic re-registration. I think it realises there are different sizes of businesses out there and not all have the same resources as others.

“So while it is in everyone’s interests to get electronic re-reg fully operational, I do not think firms will be forced to adopt it.”

EMX head of administration Andrew Baldock says: “From what we have seen of the FSA previously, it has just said re-registration should be possible, it has not been prescriptive in exactly how it should be done and is a step it is unlikely to take.”

Tisa technical director Jeffrey Mushens says: “All firms will have to accept that in some cases they will have to carry out transfers manually. This is a result of the fact that some small firms probably will not sign up to an electronic vendor.”

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