Funds distribution
Our automation solutions for funds distributors are all about saving costs, increasing transparency and reducing operational risk, day after day
Funds distribution
More efficient funds distribution through automation
Funds distribution has traditionally operated through different business models and players with their own processes and ways of working. As a result, manual or semi-manual operating environments have often persisted – and with them, inherent inefficiencies, operational risks and processing costs.
It’s time for change. Demand for funds is growing and with it, price competition. As the regulatory environment tightens, transparency is a key requirement. For funds distributors, funds platforms and transfer agents, automation and standardisation are now an urgent requirement.
Our financial messaging solution for funds distribution standardises and automates your transaction flows, including account openings, orders, confirmations, transfers, statements and reporting - all using the latest, ISO 20022 XML-based standards, ensuring efficient STP, interoperability and transparency.
Our funds solution also covers standardised order flows for the alternative funds and pension funds industry.
By using Swift, funds distributors have reduced order handling costs by up to 70 per cent.
Ends duplication of processes and costs
With our standardised solution for funds distribution, you use one channel and the same standardised message flow to connect to all participants, dramatically reducing costs.
Improves transparency and auditability
Our automated solution provides an audit trail of all transactions and operations, delivering full transparency and traceability.
Reduces operational risks
Eliminates manual errors and improves control through highly secure messaging and audit trails. We also offer easy-to-access financial crime compliance services.
Funds Migration Programme
The mandatory migration of MT to MX for funds transactions is continuing to show good progress, with MX traffic representing over 74% of the total funds traffic at the end of September 2016.
The migration programme has been intensively monitored and discussed by the Swift Board and within the Funds industry, represented by the Funds Migration Advisory Group (FMAG), who confirmed that MX is the way forward for the funds industry. As per the announcements that have been made to the funds community in March 2015, it has been confirmed that from November 2015, users of the old MT messages will be able to continue to exchange them in a closed user group (CUG) environment on the Swift network. This will be automatically done for existing MT users.
This CUG will not be open to everyone; new admissions will be challenged to ensure that the move to MX is still being carried out. As per this announcement, the CUG will be maintained until 90% of Funds traffic is fully migrated to MX, and once that threshold is reached, for another period of maximum 2 years, to cater for the last counterparties to migrate. After that date, the CUG should be decommissioned and Funds MT traffic will no longer be accepted on the Swift network. The current disincentives scheme has been updated in line with these changes, and is applicable since the August invoices.
