TRANSACT SUPPORTS IMPROVEMENTS TO INDUSTRY IN SPECIE TRANSFER TIMES

We were pleased to see the recent article in New Model Adviser on the progress made towards speeding up the in specie transfer process for non UK domiciled funds. Dimensional Fund Advisors and Vanguard are making their Dublin-based funds available for electronic messaging, which will significantly speed up platform transfers for advisers and clients alike.

Transact has played an active role in trying to drive industry change around the transfer process. As Chair of the UKETRG, Transact is actively working on a ‘transfers charter’ that aims to reduce ‘rejection’ rates through better comms and data sharing. In addition, we are working with all of the industry forums (TEX, UKETRG, PA and UKPG) on this issue focusing on how best to engage fund managers and the Investment Management Association. We are optimistic that we can improve in specie transfers both for Irish domiciled funds and also Luxembourg domiciled funds (albeit acknowledge that the latter is likely to be more challenging).

Our participation to date has focused on pensions but the initial results are encouraging. In what previously took multiple days (or weeks when paper stock transfer forms were required), using the new electronic messaging process has enabled them to be completed within hours.

With Vanguard, we are working on a pilot to include both transfer-ins as well as transfer-outs and, as per the approach we adopted with Dimensional, we plan to start with pension wrappers only. We subsequently hope to extend the approach to other wrappers. Once these pilots are complete, we will be actively engaging with other offshore asset managers and encouraging them to adopt electronic transfers. It should be noted that one barrier to adoption by fund managers is that a move towards electronic transfers may require updates to prospectuses (something which Vanguard have recently completed). Once that step is addressed, there should be no technical barrier to adoption.

Faster processing reduces risk of settlement errors and delays. We also monitor transfers for exceptions in the same way as UK flows, so any anomalies are picked up quickly. These changes also align with Consumer Duty outcomes by:

• Avoiding foreseeable harm: Faster, more accurate transfers reduce delays and error risk.
• Enabling informed decisions: Clients retain the same visibility and authority as under paper transfers; advisers have greater certainty on timings.
• Delivering fair value: Operational efficiencies translate to improved client service without additional cost.

1. Introduction
2. Transact Online (TOL) –  Recent enhancements 
3. LiveChat now supports client & transaction-specific queries
4. Transact covers UPS delivery charges for cheques
5. Transact supports improvements to industry in specie transfer times
6. Succession planning – keep clients involved
7. The Transact–BlackRock MPS turns three
8. Estate planning with a spousal bypass trust (SBT)
9. Covering the IHT liability in a pension
10. Capital Gains Tax – impact of recent changes and possible reforms
11. Interest on cash
12. Transact events 2025