The Financial Services Authority (FSA) has published a press release, where it discusses the Investment Management Association guidance on paperless renunciation/transfer of units/shares in authorised funds (the Guidance).
Investors who sell or transfer units they hold have until now been required to give the necessary authority in writing. Government regulations and FSA rules which recently came into force allow fund managers to accept the unitholder’s authorisation by electronic means such as e-mail or through the internet site of the fund manager. This is designed to permit more automated and efficient processing of unit transfers for investors, while providing adequate protection to the fund and to individual investors against fraud. The Government estimates that these provisions could bring annual administrative savings for UK fund managers of between £70 million and £290 million.
The guidance issued by the Investment Management Association explains what fund managers should do to satisfy themselves that instructions given by electronic means are genuine.