UK Fund Trading and Settlement project calls for investment industry input

UK FTS is looking to improve the way mutual funds are traded and settled in an attempt to reduce cost and risk. 

The investment industry will issue a call for input on the UK Fund Trading and Settlement (UK FTS) project, which aims to change the way mutual funds are traded are settled.

The project’s next phase is to “engage with suppliers who have the capability to help shape the future for UK fund distribution.”

“The group plans to issue a Request for Information (RFI) which will be open to any potential supplier or suppliers, whether existing or new, who feels they may be able to help support this initiative,” according to a statement released this week.

More than 20 companies and representatives of several trade bodies, including the Investment Association, established UK FTS several months ago.

Fidelity International’s head of business development, Ed Dymott, has been appointed as the group’s chair, and Charles McCready will be programme director.

Dymott said: “We have seen a growing consensus that now is the time to engage as an industry to look at what a possible vision for the future may look like.

“Looking at other markets, such as the US, parts of Europe and Asia, there are clearly solutions that help fund managers reduce cost and risk whilst creating better client outcomes. These solutions need to be evaluated.”

Law firm Hogan Lovells and consultancy Ernst & Young will oversee the process “to ensure best practice is observed during the market-wide engagement process.”

The RFI is expected to be issued in early June. 

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