The manual processing of orders is not only risky, but takes up time that could be spent implementing clients’ wishes.
Currently, a buyer must send a fax to the registry with details of an order; the registry of the fund keys that data in manually; the unit price is confirmed; and another fax goes back to the buyer to key into their own system.
Calastone managing director, Shannon Sweeney says that there are many risks to the manual process, and it is affecting the advisers’ experience. Research into what drives planner satisfaction with their platform or service provider shows that the key issues are administrative accuracy and the turnaround times on the applications and redemptions, says Sweeney.
“Removing the manual processing and having automation between that order sender and receiver, means that there is less risk, so the accuracy is increased.
“Calastone provides that connection to both parties and we transform the data into the format that suits each provider and also facilitate an additional component or message which is an ‘accept’ or a ‘reject’ to know the order is in the money. When a fax machine sends an order there’s no acknowledgement that the fax got there.”
Australian equities fund manager Hyperion, is Calastone’s 81st Australian client. More than 40% of the market has now joined the network. Sweeney said that the industry had been wholeheartedly supportive of the move to automation.
Hyperion’s managing director, Tim Samway said they welcomed the automation, “with the reduced risks and the increased levels of accuracy and timeliness it brings.”
Sweeney says they are looking forward to their next product to market, “removing more faxes, which is about statement of holdings and the reconciliation process.”
“You’ve got to reconcile your holdings before you can provide your adviser their statement and before you can apply a distribution income through their account. So it is a very key step and currently is manually done…Calastone will be able to help facilitate in that process and draw that timeline of execution of those reconciliations down as well.”