EFAMA: FPSG report

29 March 2011

The aim of the recommendations is to increase efficiency in processing fund orders. The report was prepared by EFAMA’s Fund Processing Standardisation Group. It consolidates the recommendations published in 2005, and extends the recommendations in two key areas: transfers and corporate actions.

Transfers: Transfers of units between two accounts recorded in the legal register of fund holders are generally instructed using physical documents and faxes. As such, they require manual intervention, which makes them resource-intensive and exposes them to the risk of human error. Moreover, their processing is usually not time-critical, leading to delays that can have a knock-on impact on a custodian’s ability to service their client effectively. The report makes concrete recommendations to improve communication between the actors involved and shorten processing timelines, thereby reducing the risk of human error.

Peter De Proft, Director General of EFAMA, adds: “With the publication of this new report, EFAMA confirms its central role in leading the European fund industry’s efforts to make fund processing simpler and more automated. Harmonising fund processing practices in the direction recommended by the FPSG and accelerating convergence towards the proposed standards represents an effective approach for reducing operating costs and serving the interests of investors. We are encouraged by feedback received that the FPSG’s recommendations are taken seriously by market participants and infrastructure providers. Still, progress towards full implementation could be faster. We therefore call upon our member associations to accompany the release of this report with specific actions to foster a higher degree of convergence at national level, taking into account their specific challenges.”

Press release 

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