Euroclear and EMXCo have formed a Funds Liaison Group, comprising senior executives from across the fund industry, to provide a forum for market consultation on future order-routing and settlement solutions for UK investment funds.
The Funds Liaison Group was carefully populated to ensure its credibility and value as a representative consultative committee of expert fund-market professionals. With the agenda to drive change forward, the Funds Liaison Group brings together various industry stakeholders to enable the development and delivery of a market- sponsored solution for straight-through processing of order routing, settlement and asset servicing in line with the Investment Management Association's principles for fund processing. Changes are aimed at providing greater efficiency and cost savings for the whole industry.
Carol Wechsler, Principal at Edward Jones Ltd, is Chairperson of the Funds Liaison Group. The Group's members include:
- Fund managers: Invesco Perpetual, JP Morgan Asset Management Ltd, New Star Investment Funds Ltd, Old Mutual Asset Management, Schroders Investments Ltd, Threadneedle Asset Management
- Retail brokers: Brewin Dolphin Securities Ltd, Charles Stanley Ltd, Edward Jones Ltd, Halifax Share Dealing Ltd
- Transfer agents: BNP Paribas Fund Services UK Ltd, International Financial Data Services Ltd (IFDS), Mellon Global Securities Services Ltd, Northern Trust Ltd, The Bank of New York
- Fund aggregators/platforms: Abbey National Wrap Managers Ltd, Fidelity/FundsNetwork, Hargreaves Lansdown, Skandia/Selestia
- Banks and custodians: Barclays Wealth, HSBC, Northern Trust Ltd
- Industry bodies: APCIMS, IMA, ISITC and PIMA.
Euroclear and EMXCo are also members of the Funds Liaison Group.
The Group had its first meeting in April and agreed to meet quarterly.
Tim May, CRESTCo's Chief Executive Officer, said: "As with all Euroclear developments, market consultation will be sought throughout the design, development and implementation phases of the work that EMXCo and Euroclear will be undertaking together in order to deliver meaningful and comprehensive market benefits. The Funds Liaison Group is the principal body through which consultation will be conducted."
Carol Wechsler, Principal at Edward Jones Ltd and Chair of the Funds Liaison Group, said: "This is the first forum representing parties on both sides of a fund transaction to meet and agree on their combined objectives. This shows the benefit of the UK market infrastructure's involvement. As a working group, we have agreed it is our responsibility to investigate and assess all available options for the introduction of STP - for the delivery of greater efficiency and cost saving - to the UK investment-fund market. I very much look forward to chairing this group to reach a successful solution over time."