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The private banking world does not make enough use of electronic messaging standards like FIX and is missing an opportunity to offer a better service to clients. Peter Guest reports

— Libbrecht: ‘Incentives for distributors’

Cost reduction through the introduction of automated processes and standardisation is essential if the transfer agency business is to maintain revenue in a changing technological environment. Virginie O’Shea reports

Changes in the IFA community are being felt by transfer agents. Peter Guest looks at the problems faced in moving away from traditional clients

— Søren Mose: “The old-fashion way of print and mail doesn’t work”

Today’s generation of wealthy want real-time access to, and updates on, their investments. As such, wealth managers need to find a balance between automation and offering a personal service. Peter Guest reports

When case study Clariden Leu decided to integrate its processes and ­outsource IT, it understood the magnitude of the task. Peter Guest reports

Clariden Leu’s COO, Roland Hermann, is likely to be managing change for some time as his IT integration has taken place in front of a backdrop of ­shifting management and structure, as senior figures within the bank depart and the newly merged entity continues to grow through acquisition.

American Express Bank needed a parent that could accommodate its private banking and transaction banking services – enter Standard Chartered. Peter Guest assesses the £1.6bn deal

Rather than being limited by the Markets in Financial Instruments Directive, Denmark’s Saxo Bank is feeling positive as it can now offer previously restricted products throughout the EU. Peter Guest reports

SGSS’s acquisitions across the continent offers clients a local presence but backed up by a global brand, writes Peter Guest

— ‘I’m not sure how much some of the regulators appreciate that providing information is always a double-edged sword’ - Alain Lesjongard, BNY Mellon

MiFID comes into force on November 1 and could mark a revolution in the amount of information wealth managers need to provide, but some see it as a continuation of a current process. Peter Guest reports

The availibility of sophisticated software, alongside regulatory demand for more complex master records, has allowed customer relationship management to become more tailored to the client, writes Peter Guest

— Healy: we have a global reach and brand

Citi’s acquisition of Bisys marks a move by the firm to push into the hedge fund admin space. However, it believes that it is posssible to provide a servicing solution for both the long and short worlds. Alison Ebbage reports

Five industry heads met in Luxembourg to discuss what challenges the new stringent regulatory environment presents for transfer agents, distributors, fund houses and central securities depositories

— Brewer: small changes don’t work

The move away from in-house software development towards bought-in solutions has left banks with a bewildering choice of applications. Alison Ebbage looks at how to find the best for you

— Domon: maintaining flexibility

Axeltis has built a reputation as an intermediary between asset managers and distributors. Alison Ebbage talks to its head of business development about how the formation of Natixis will change the company’s position

It is becoming far too costly for wealth managers and private banks to be able to keep up with the technology necessary to carry out their business, so many are looking to third-party providers. How can they ensure the solutions are tailored to their individual needs? Alison Ebbage reports

— Brady: wealth managers require a platinum-type service

Professional investors are demanding more customised information at the portfolio level, as well as tailored customer statements and real-time data. Alison Ebbage reports on how Bisys Fund Services is meeting this need

— Pirker: service is a numbers game

As private banks start targeting the mass affluent segment, financial advisers are finding themselves having to prove their productivity against demanding benchmarks. Elisa Trovato reports

A raft of legislation has made it increasingly difficult for wealth managers to handle everything themselves, according to Brown Brothers Harriman’s Andrew Tucker. Alison Ebbage speaks to him on the evolving roles of custodians

According to Tom Isaac of Citigroup, much of the budget and human resources within private banks are taken up by MiFID preparations, when they are needed for a core competency rethink. Alison Ebbage reports

— Powell: untangling the relationship

Merrill Lynch Investment Managers’ merger with BlackRock means

its wealth management division must evolve into a standalone

operation. Alison Ebbage meets the man facing the challenge

— Wright: automating the process

Euroclear claims that its recent acquisition of EMXCo UK order routing provides the technology to cut companies’ trading costs by as much as 50 per cent. Elisa Trovato reports from behind the scenes

— Nicora: there’s an in­ertia over real costs

There’s no doubt that straight-through processing is a godsend in the data heavy world of quantitative fund selection. However does it have a place in qualitative investing and can the cost justify a switch? Elisa Trovato reports

Front office wealth management technology is growing in size and many providers are entering into partnerships in order to get a piece of the action. Elisa Trovato reports on the added value and efficiency offered by automation

In the ever-changing area of transfer agency technology, banks are finding it increasingly difficult to keep up with the demands of change. A trend for outsourcing is developing in an attempt to cut costs, writes Elisa Trovato

Six industry heads meet in Luxembourg to discuss the challenges facing private banks and fund management groups in the optech arena, including third-party fund processing and the need for a paperless solution

— Faber: notification will streamline market

Despite being designed to smooth cross-border fund sales and distribution some open interpretation of Ucits III rules has left funds with a headache in the notification procedure for different jurisdictions, writes Elisa Trovato

— Robinson: required technology can be viewed as a jigsaw

Although private banks keep an eye on the technology needed to administer and analyse portfolios, they have been slow to implement systems to support clients and customer service. Alison Ebbage looks at ways dedicated systems can meet this need

— Libbrecth: funds different from bonds

At the end of March, the introduction a new order-routing infrastructure for local funds will make France the most advanced market in Europe for fund processing. Paula Garrido reports

Offshoring certain office functions may be a cost saving device, but it is essential that the firm works with the outsourced employees in partnership as well as choosing the right geographical location, writes Elizabeth Cripps

— Dundon: independent data acts as a frontline source of comfort

As European private banks look for information and peace of mind over hedge fund valuations, new opportunities have opened for fund service providers if they can provide a solution, writes Alison Ebbage

The extension of hedge funds to a wider audience is creating nascent local markets in Europe each with their own set of regulations. The challenge for fund administrators is to assist local managers in shaping the development of each market.

These regulatory environments, while more restrictive than offshore domiciles, are likely to be good business sources for hedge fund administrators. Requirements for clear reporting of what a fund actually invest in will surely play well to administrators used to taking on such value added tasks.

Alan Dundon, head of product development at BNP Paribas Securities Services explains that these local markets cannot be compared to those serviced by cross-border funds from Dublin or Luxembourg. “The locally domiciled vehicle does provide an alternative to investors hesitant in investing offshore and attaching importance to local regulation and tax laws,” he says.

The development of each local market is also at varying stages. In Germany for example, new regulations were introduced as part of the Investment Act of 2004. A big part of the overall act was levelling the playing field for domestic and foreign long-only funds but the German regulators decided to widen the scope of products included in order to remain a competitive jurisdiction. Further regulation is expected soon. In particular, the market requires some clarification over the role of the prime broker as opposed to the depo bank and the inability for funds of hedge funds to leverage.

Overall take-up has been slow, with BNP Paribas citing only ?1bn under management at the end of 2004 and an expected ?2bn by the end of this year. These figures are well below initial expectations and until now, only 10 hedge funds have been launched, according to the firm.

In France, hedge funds were introduced in August 2003 and in July this year, the market received a boost with the introduction of a new decree by the AMF (the French regulator) which clarified the use of assets held as collateral by the prime broker. The French regulator currently has around 50 ARIA funds with almost 20 fund managers being approved for the sale of ARIAEL funds. Italy has had local hedge funds for five years and Spain is currently bringing in regulations.

But the real question is whether local markets will be able to attract the right mix of people to support eventual demand.

— Patel: scalability, flexibility and agility

For many asset managers, simply getting connected to SWIFT is an obstacle that comes with a big price tag and can imply an IT re-engineering project. Roger Aitken explores some innovations and solutions

— Lecaudey: platform is up to date

BNP Paribas’ Sébastien Lecaudey is targeting the UK and German

markets and believes that his one-stop-shop performance measurement

system is the ideal tool to help him do so, writes Roxane McMeeken

Volumes in open architecture are swelling, which means that the delays and errors in current manual systems are also increasing. As automation is more widely adopted, those platforms who listen to the individual needs of consumers are gaining the edge, says Paula Garrido

It may be difficult to envisage a need for any solutions in the current funds market, but the operations problems that many investment groups refuse to acknowledge could cause a commercial accident in the future if they are not addressed now. The first stage is a mature debate to establish what changes are needed, says Bruno Zutterling

As former head of strategy at Axa Investment Managers, Kirk Hotte is well placed to market a re-engineered range of products to Europe’s

distributors in his new role. He reveals his blueprint to Yuri Bender

The systematic approach favoured by Kirk Hotte means that a plan of action is identified for each country. Axa IM has sourced ?164bn of its asset from outside France. In 2004, the strategy team at Axa IM, which was headed by Mr Hotte at the time, before his transfer to the distribution department, decided that in Germany the sales team would concentrate on selling the Immoselect property fund, in addition to products managed by the quantitative led Axa Rosenberg subsidiary.

The reluctance of distributors to invest in technology is amplified by the adoption of complex vehicles such as funds of funds, writes Roxane McMeeken

— Griffiths: change is coming, but slowly

Q&A with Hugh Griffiths, assistant director to specialist investment management consulting firm, Citisoft.

Automated, standardised external transaction processes are surprisingly rare in an industry still wedded to the telephone and the postman. Roxane McMeeken explains what’s holding things up

Hugh Griffiths, assistant director to specialist investment management consulting firm Citisoft, explains the weaknesses in the nuts and bolts of the open architecture fund distribution:

— Fortress Luxembourg: the Duchy enjoys a commanding TA share

Luxembourg’s dominant position in the costly business of transfer agency seems assured, especially given its collective efforts to standardise and automate the industry. But Dublin is snapping at its heels. Paula Garrido reports

Aware of what it’s up against, Malta still has aspirations to become a part player in the European fund administration business. Paula Garrido reports

— New frontier: UBS’s BFB initiative gives banks access to enhanced capabilities

UBS’s ‘Bank for Banks’ outsourcing initiative offers smaller institutions the capabilities to pack a global punch, writes Paula Garrido

Growing numbers of cross-border investment transactions have been hampered by a lack of international infrastructure, writes Paula Garrido

Regulators and securities depositaries are having to come up with a more efficient infrastructure as product distribution arrangements become more complex to accommodate open architecture, writes Paula Garrido

Providers and regulators are beginning to respond to the challenge of developing a more efficient infrastructure and a regulatory framework, which will shape the future of securities clearing and settlement in Europe in an age of increasingly complex product distribution arrangements.

— ‘The entry cost to this business is very high, because if you don’t have the right systems, you are in trouble’ Alan Tooker, DPM

Hedge fund assets have risen fast enough for administrators to build up business, but they must keep up with innovations, writes Paula Garrido.

The hedge funds industry has received several positive boosts of late. The Man Group raised over $800m (e675m) , predominantly from wealthy individuals, for its multi-strategy product. Gartmore, an equity funds specialist, broached the $4bn mark in alternatives. And ratings house S&P has added an equity long/short funds index to its existing hedge funds family, which itself commenced in October 2002.

Paula Garrido examines how State Street’s acquisition policy has led to significant growth in the key European distribution market.

Independent research shows that customers prefer to deal with a local operator, but, as Roxane McMeeken reports, wealth managers like Fidelity and Investec are standing by their decision to outsource call services.