Automatisation of fund orders continued in H1, Swift and EFAMA finds

The automatisation and standardisation of fund orders received by transfer agents in the cross-border fund centres of Luxembourg and Ireland increased in the first half of 2012, according to a report published today by the European Fund and Asset Management Association in cooperation with SWIFT.

The total automation rate (ISO and proprietary files) of orders received by Luxembourg and Irish TAs reached 77%, compared to 75.6% in Q4 2011.

According to the survey,  the total automation rate increase was driven by increased adoption of the ISO messaging standard and a decrease in the use of proprietary file transfer protocols and faxes.

ISO adoption continued to increase in both fund domiciles.

In Luxemburg, the total automation rate increased by 2.9% to 73.1%. In Ireland, the total automation rate increased by 0.4 % to 84.6% in Q2 2012.

The total number of orders has stabilised at 11.9 million orders in the first half of 2012.  The number of manually processed orders decreased by 7% to 2.8 million received faxes. This still represents a daily average of some 25,000 incoming faxes.

“In the previous edition of the report, we set the goal for the industry to move closer to the 80 percent threshold for total automation rate in 2012. The mid-year 77% rate is an achievement to applaud and a very positive step in this direction. This shows the priority that the industry sets to itself to continue to strengthen efficiency in fund-back office activities for the ultimate benefit of end investors,” said Peter De Proft, EFAMA Director General.

The report was based on a survey on 32 trasfer agents in Ireland and Luxembourg, representing more than 80% of the total incoming third-party investment funds order volumes in both markets, participated in the survey.

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