The European Fund and Asset Management Association (EFAMA) have taken the next step in their initiative to facilitate the trading of funds, called the Fund Processing Passport (FPP), by publishing a brochure with details of the proposal .
According to EFAMA, the FPP will facilitate trading by providing all key operational information that fund promoters should provide.
Six European associations in the financial sector, including the European Banking Federation, the Forum of European Asset Managers and the Industry Standardization for Institutional Trade Communication Europe, have registered support for the scheme.
The associations involved share the view that simplifying processing procedures would facilitate dealing in fund units, reduce costs and operational risk, and support the implementation of open architecture solutions.
EFAMA is keen for the FPP to become an industry standard and Stefan Bichsel, EFAMA president, says: “The benefits of these standards will result from the fact that many different companies adopt them.
"Hence, the importance of the proactive support received from six relevant organizations for the publication of the FPP brochure. This is another important step towards a wide acceptance of the FPP as a new industry standard.”
The parties involved hope that the introduction of the passport will help fund managers improve the efficiency of their business as cross-border trading becomes increasingly common.
According to EFAMA, some back-office activities can be very demanding and an increase in efficiency in these areas should allow more funds to be sold and give those adopting the passport a competitive advantage.
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