Investec Wealth & Investment is among firms attempting to speed up the process of transferring stocks between investors, partly to meet UK regulatory requirements under the Retail Distribution Review (RDR).
The firm is aiming to complete stock transfers within a day. Across the industry stock transfers can take weeks, but the RDR has required the funds industry to have a faster overall process for transferring stock ownership.
The firm has adopted an automated stock transfer product from Calastone.
Calastone says other fund providers, including Rathbone Investment Management, have also started to employ its Transfer Service product to increase automation of transfers.
As well as the RDR driver, Calastone says there is also demand for better facilitated transfers between nominee accounts.
Ann Mosey, head of settlements at Investec Wealth & Investment, says operational efficiencies will be gained from the straight-through-processing offered by automation.
“A key goal for us is to undertake and complete transfers for the majority of cases within a day, thus driving valuable operational and cost efficiencies.”
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