Jump to content

Fund Processing Passport

Add links
From Wikipedia, the free encyclopedia
This is an old revision of this page, as edited by Efama (talk | contribs) at 10:21, 19 April 2011. The present address (URL) is a permanent link to this revision, which may differ significantly from the current revision.

The Fund Processing Passport (FPP), developed by the European Fund and Asset Management Association EFAMA, is a fully harmonized document with all the key "operational" information that fund promoters should provide on their investment funds, at class level, in order to facilitate their trading, minimize delays in processing transaction and errors in execution orders. By making this inforamtion available in a standadized way, fund managers aim at symplifying fund-order processing, thereby addressing distributor needs.


FPP Definition

The FPP is a short, single, fully harmonised document containing all the key “operational” information that fund promoters should provide on their investment funds, at class level, in order to facilitate their trading. The information covered includes ISIN code, contact details, subscriptions/redemptions rules, settlement details, cut off times, etc. The complete set of information covered by the FPP including a user guide can be found on EFAMA website.

The FPP has been drawn up from the viewpoint of all relevant professional players involved in the operational aspects of investment funds distribution: investor intermediaries, distributors, distribution platforms, and fund management companies and their service providers (transfer agents/registrars, fund accounting agents, trustees, custodians, portfolio managers).

The FPP is not intended to provide investors with information about the essentials they should know before investing in a fund. Therefore it serves a different purpose from the Simplified Prospectus and the Key Investor Information document. The FPP contains 105 fields of relevant operational information: a list of 77 'Core Data' items, with 49 mandatory items and 28 optional items. Additional fields are also contained in the 'Local Annexes'. These are for country-specific information concerning the dealing/settlement arrangements for other markets where the class of unit/share is also distributed and also concerning dealing/settlement arrangements that could take place in the home market in different circumstances


History

In the context of discussions on raising efficiency within the European investment fund industry and bearing in mind the significant potential cost savings that could be achieved in the processing of fund orders, EFAMA established the Fund Processing Standardisation Group (FPSG). The FPSG’s mandate was to identify obstacles to efficiency in back-office procedures and to outline possible actions for removing them.

The FPSG published its first set of recommendations in February 2005. An updated report was published in September 2008. This report consolidates the 2005 recommendations and extends them in three service areas: holding and transaction reporting, commission handling and settlement cycles.

In early 2007, EFAMA published the version 1.0 of the Fund Processing Passport, which had been outlined in the FPSG recommendations of 2005. To highlight the rationale for the FPP, EFAMA published a brochure in June 2007. In May 2008, EFAMA released a revised and improved version of the FPP, together with an updated version of its User Guide and formatting guidelines (see "Fund Processing Passport User Guide", version 2.0, Excel file)

EFAMA strongly believes that the FPSG recommendations, if embraced by the industry, will serve to converge towards industry-wide standards, thereby removing an important barrier to the development of harmonized processing of investment fund transactions in Europe.


Main benefits of the FPP

Benefits for fund distributors: The FPP will:

- provide all the information that is needed to fund distributors to avoid unnecessary steps, generate fewer errors and reduce costs. - minimize redundancy checks, delays in processing transactions and errors in executing the orders

Benefits for fund managers: The FPP will:

- deliver higher quality service by making it easier to place a fund order. - speed up the treatment of fund orders. - push down processing costs. - promote the accessibility of standardized information. - open the way to electronic communications of the FPPs and, thereby, to other opportunities of cost savings.

EFAMA FPP Portal

EFAMA opened a Portal on its website in June 2010 to provide access to all existing Fund Processing Passports(FPPs). The Portal includes a search engine that allows to search FPPs according to the following criteria: ISIN, Fund name, Umbrella name, Management company, Last revision, and FPP Providers. The results include a list of links to websites where the FPP providers keep the “golden copies” of their FPPs.

  • More information available at Efama
Retrieved from "https://en.wikipedia.org/w/index.php?title=Fund_Processing_Passport&oldid=424834672"