ISO 20022 messages for funds: a full solution
One step beyondOne of the key challenges facing the fund industry is automation, especially in cross-border distribution. In 2002, the fund industry mandated SWIFT to develop a set of templates to be used for the subscription/redemption process, leveraging the MT messages used for securities transactions (MT502, MT509 and MT515). This solution – created in the ISO 15022 format - was a success and in 2007 more than 900 customers used more than 22 million fund templates.
Today – almost seven years later - it is time to move one step beyond. In close collaboration with the fund industry, SWIFT has developed a new set of ISO 20022 messages. They of course cover the transaction flow, but also transfers, statements, account management, price reports and cash forecasts. As a result the new messages, defined and validated by fund industry experts, can deal with all key processes within the value chain.
From a product point of view, the new messages not only cover the classic mutual funds but also comply with the specific needs of pension funds and alternative funds. And from a geographical point of view, the new messages offer a true answer to the global cross-border reality of today’s fund distribution industry. This is also illustrated by the fact that more than 40 key market players already use the new messages for their day-to-day business.
The next step is to generalise the use of the new fund messages.
From PowerPoint to Practice
The financial industry, represented in the Board of SWIFT, has clearly indicated that the ISO 20022 fund messages should be used by all market players. The Board decided in December that the migration should be finalised by end 2012.
In order to facilitate this migration, SWIFT has set up a Funds Migration Programme, which started early this year and will continue until the migration is complete.
The goal of this programme is to support clients who migrate and to monitor progress made.
SWIFT’s support offering will include:
- Translation rules
- A translation reference tool
- Alliance Integrator, a SWIFT specific integration layer for connecting your business application with our messaging
- Detailed service offers from SWIFT and the community of SWIFT partners supporting the migration
- Facilitated training
In a first phase, efforts are focusing on the receiving end of the value chain: transfer agents and hub platforms. The goal is to have this specific target group ready (that is, able to send and receive the new type of messages) by the end of 2009.
Communication will be one of the success factors for this migration. Therefore, in collaboration with its clients and partners, SWIFT will communicate intensively on the migration effort and the progress made.
This will be done using the classic SWIFT channels but also via fund associations around the globe supporting the migration.
More information
If you want to know more about the fund migration and what it means for your business, please contact your local SWIFT office.
For more information on the fund messages, please click here
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