AML and tax regulation contribute to change in TA role
24 January 2019 London
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Anti-money laundering (AML) regulation and tax regulation have changed the role of the transfer agency (TA) significantly, as there is now a focus on AML know-your-customer and a continuous push towards transparency, according to Mateusz Derejski, country head of Poland Metrosoft.
Derejski revealed in a recent interview with Asset Servicing Times that over the last five to 10 years, TA processing has “become bread and butter” and that “no one complains about the complexity of TA processing anymore”.
The role of the TA has changed from mainly processing to value-add services, in order to provide solutions support and to provide client service.
In the same article, Clive Bellows, head of global fund services for Europe, the Middle East and Africa, Northern Trust, stated: “Clients want the ability to engage with their TA providers on a range of ancillary services—from AML regulations to new cross border distribution strategies.”
He added: “It is an important time for transfer agents as they deal directly with the end investor and are therefore a visible extension of the fund manager and their brand.”
When asked if fintech is changing the way transfer agents operate, Derejski affirmed: “We are not yet at the point where TAs can provide a single, simplified, coherent view of all meaningful data to the asset manager.”
To the same consideration, Bellows said: “Much of the innovation we have seen in recent years has been at least partly due to regulation. The two must work together and the best solutions are those that have practical, compliant applications.”
He added: “Speculation of TA’s disintermediation or even extinction is exaggerated. Investors want to work with custodians who not only provide the solutions they need but who are strategic partners.”
“They want to see service providers integrate systems, standards and people to create tighter and better efficiencies. They want their providers to be flexible, responsive, and attentive.”
Click here to read the full discussion between Clive Bellows of Northern Trust and Mateusz Derejski of Metrosoft in the latest issue of Asset Servicing Times. Also, make sure you subscribe to receive the latest news, features and analysis.
Derejski revealed in a recent interview with Asset Servicing Times that over the last five to 10 years, TA processing has “become bread and butter” and that “no one complains about the complexity of TA processing anymore”.
The role of the TA has changed from mainly processing to value-add services, in order to provide solutions support and to provide client service.
In the same article, Clive Bellows, head of global fund services for Europe, the Middle East and Africa, Northern Trust, stated: “Clients want the ability to engage with their TA providers on a range of ancillary services—from AML regulations to new cross border distribution strategies.”
He added: “It is an important time for transfer agents as they deal directly with the end investor and are therefore a visible extension of the fund manager and their brand.”
When asked if fintech is changing the way transfer agents operate, Derejski affirmed: “We are not yet at the point where TAs can provide a single, simplified, coherent view of all meaningful data to the asset manager.”
To the same consideration, Bellows said: “Much of the innovation we have seen in recent years has been at least partly due to regulation. The two must work together and the best solutions are those that have practical, compliant applications.”
He added: “Speculation of TA’s disintermediation or even extinction is exaggerated. Investors want to work with custodians who not only provide the solutions they need but who are strategic partners.”
“They want to see service providers integrate systems, standards and people to create tighter and better efficiencies. They want their providers to be flexible, responsive, and attentive.”
Click here to read the full discussion between Clive Bellows of Northern Trust and Mateusz Derejski of Metrosoft in the latest issue of Asset Servicing Times. Also, make sure you subscribe to receive the latest news, features and analysis.
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