Global funds transaction network Calastone has announced two of Australia’s largest registry businesses, OneVue and Mainstream, and their fund manager clients have connected to its network to automate the transfer of clients’ managed funds holdings across platforms.
Transfers involved a series of transactions triggered when an adviser elected to move investor holdings from one platform to another.
The process allowed beneficial ownership of securities to move to a different custodian without having to be sold and repurchased through the market, avoiding costs and other obstacles.
Since its introduction in 2017, it had reduced the average transfer completion time from two weeks to less than 12 hours.
Ross Fox, acting head of Australia and New Zealand at Calastone, said the number of registered participants and volume of transfers have trebled over the last 12 months.
“Calastone’s Transfers solution addresses a major friction point that has long frustrated industry participants due to the intensive documentation and authorisation required when an adviser initiates a single or bulk transfer to a different platform,” Fox said.
“Straight-through-processing allows for seamless and transparent transfers, removing the uncertainty, delays and risk inherent in manual processing of these complex transactions.”