Press Releases

7 February 2007

RAYMOND JAMES ENCOURAGES INDUSTRY WIDE DISCUSSION ON ASSET TRANSFER PROTOCOLS

Raymond James Investment Services supports the IMA’s involvement in the Platform Committee, but encourages an industry wide discussion to include all participants including fund companies, investment management and stock broking firms, wrap platforms, fund supermarkets as well as underlying custodians. Peter Moores, Raymond James Chief Executive Officer notes, “We would like to see a movement towards an industry wide solution, perhaps something similar to the Automated Customer Account Transfer Service (ACATS) adopted in the US. ACATS was mandated for use by the New York Stock Exchange and National Association of Securities Dealers for their member firms who are participants of a registered clearing agency and provides for the quick and efficient transfer of customer accounts.”

Under ACATS, the transfer of equities, bonds and funds occurs using set protocols, typically in 7 business days and has been extended to even cover the transfer of cost basis information. Moores adds, “This would further demonstrate the industry’s commitment to TCF in that it would give true portability to a client’s account and choice of firm or platform. The transfer process could at some point even ideally include cost basis history in an automated fashion”. The comments follow the recent announcement by the Platform Committee, which includes representatives of Cofunds, Fidelity Funds Network, Skandia, Selestia and Standard Life, of their intention to develop a proprietary standard for re-registration of funds between the participants.

The National Securities Clearing Corporation (NSCC), which is a subsidiary of The Depository Trust & Clearing Corporation (DTCC), is the body overseeing ACATS. As such, NSCC is the conduit of information to all members and sets the transfer standards and protocols. The majority of fund companies and investment firms in the US are participants and thus members of the ACAT system and ACAT Funds Serve. Moores offers, “We would welcome the opportunity to involve our colleagues from the US to share information and their experiences regarding the ACATS process, including any challenges, in an appropriate industry forum to further our discussions on this issue in the UK.”

Raymond James processes transfers of securities and funds on a daily basis. The transfer process for equities and bonds is fairly efficient, with completion typically in 7 to 10 days. Furthermore, while funds historically took 4 to 8 weeks to be reregistered, Raymond James has been able to drive this timeline to typically 2 to 4 weeks, if not shorter. The improvements have been made through the use of in-house developed automated tracking tools as well as consistent and sustained efforts to follow up with all participants in the process.

Moores adds, ‘We are clearly pleased to see the topic of in-specie transfers high on the agenda. The brief, as we understand it, of the Platform Committee is to develop common standards for fund transfers, in particular looking at ISA transfers. We would encourage the industry to enhance through automation the basic process we have today and ensure that, where possible, any new protocols involve a broad universe of market participants which will ensure the highest level of adoption amongst our peers and will ultimately determine its success for the private clients. This includes adding automation for ISA transfers. While the ISA transfer process is currently fairly straightforward, with the information required for the wrapper transfer defined by HMRC, improvements could be made through the use of technology rather than paper. Any improvements, however, need to be on an industry wide basis and not by a subset of participants”.

For further information, please contact:

Cynthia Poole, Director of Relationship Management and Business Support 
Raymond James Investment Services
Tel 020 7337 0712 or Cynthia.Poole@RaymondJames.com.

Notes to editors
Online information

http://rjis.co.uk/home.htm
http://www.adviserchoice.co.uk/

About Raymond James Investment Services Limited (RJIS)
RJIS is the UK private client investment management arm of Raymond James Financial, a US based diversified financial services company.  The firm commenced operation in 2001 and has 35 locations across the UK. RJIS offers private client investment managers and advisers a platform of choice, providing alternative methods of affiliation through three business models: Independent Contracting, Professional Partners and the Wrap Platform. Its goal is to provide investment professionals in the UK with the freedom to deliver to clients a complete integrated wealth management solution whilst retaining their independence.

RJIS is a member of the London Stock Exchange and is authorised and regulated by the Financial Services Authority.  Registered Office 77 Cornhill, London EC3V 3QQ.

About Raymond James Financial, Inc. (RJF)
Established in 1962, Raymond James Financial has been listed on the New York Stock Exchange since 1983 and has a current market capitalization of approximately $3.6B. RJF offers a comprehensive range of wealth management products and services to over one million accounts, representing total client assets of over $180 billion. RJF currently has 4700 advisers located in 2,200 office locations throughout the US, Canada and the UK.

Having pioneered the independent contractor concept in the early 1970’s in the US, Raymond James Financial today enjoys an enviable reputation amongst investment managers and advisers for client service and investment in new technologies.

Raymond James Investment Services is a member of the London Stock Exchange and is authorised and regulated by the Financial Services Authority