Nordnet has successfully executed the first electronic mutual fund transfer in Sweden, in partnership with Fidelity and using the SWIFT global messaging network.
The move is intended to pave the way for a new industry standard, moving away from the old fax-based system and potentially reducing processing times by half. Currently, transfers can take up to two weeks to transfer.
According to Nordnet, many Swedish banks already use electronic fund orders, but not electronic fund transfers. Nordnet intends to be the first to introduce a fully automated process, eliminating manual processes altogether.
Faster processing should allow greater flexibility for transfers, and also improve reliability.
Nordnet transfers approximately 700 funds a month within Sweden, with a value of about SEK 200,000 (€21,678). Its first electronic mutual fun transfer was made using a specific SWIFT message type that was developed in collaboration with various fund companies.
Olivier Lens, SWIFT head of funds and investment management for Europe the Middle East and Asia, said: “This is an important development for the funds industry in the Nordics region and globally.”
“The automation of transfers will help take efficiency in the Swedish funds market to the next level, and SWIFT is proud to be helping these players to take a leading role in innovating to reduce risk and cost in the funds business, and to drive improved transparency for investors.”
