10 February 2005

FEFSI reports on cross-boarder processing of fund units and shares

FEFSI published two reports of its Fund Processing Standardization Group (FPSG) aimed to develop recommendations for improving efficiency in the cross-border processing of fund units and shares. The first report entitled “Standardization of Funds Processing in Europe – Order and Settlement” develops a number of recommendations, which will serve to converge towards industry-wide standards. FEFSI believes that this process would contribute to overcome national differences in backoffice procedures and thereby remove an important barrier to the development of harmonized processing of investment fund transactions in Europe.

The second report entitled “A Pan-European Fund Processing Passport” proposes that fund management companies summarize in a fully harmonized single pan-European document the essential information on their investment funds in order to facilitate funds processing.

FEFSI strongly believes that the adoption of this as a new standard would contribute to increase efficiency in the fund industry, especially in cross-border situations.

FEFSI plans to seek Europe-wide endorsement of the FPSG recommendations at national level and identify major players who would be prepared to be early adopters. FEFSI will also undertake an Annual Review of the progress achieved in autumn of 2005.

Standardization of Funds Processing in Europe – Order and Settlement
A Pan-European Fund Processing Passport

© FEFSI