2017年-SWIFT环球同业银行金融电讯_Funds_Automation_in_Asia_Pacific_14页_984kb

Funds Automation in Asia Pacific: Summary

Core Content

This document provides an in-depth analysis of the current state of funds automation in the Asia-Pacific (APAC) region, comparing it with the more mature European market. It outlines the historical development of automation in Europe, explores the evolving landscape of automation in APAC, and highlights the role of new technologies such as blockchain, KYC utilities, and robo-advisers in shaping the future of the funds industry. Additionally, it discusses regional passporting initiatives and the importance of standardisation and collaboration for the growth of the APAC funds industry.

Main Points and Key Information

1. State of Funds Automation in Europe

• Historical Development: Funds automation in Europe evolved from manual methods (fax, phone) to digital formats (email, spreadsheets), and later to ISO 15022 and ISO 20022 standards.
• Impact of UCITS: The introduction of the UCITS framework in the 2000s accelerated automation and standardisation in the European funds industry.
• Automation Rates: By 2015, automation rates for cross-border fund orders reached 85.4%, with over 50% using ISO messaging formats.
• Straight Through Processing (STP): STP was instrumental in achieving operational efficiency and scalability in the European funds industry.
• Industry Collaboration: Organised groups like EFAMA and SMPG played a critical role in standardisation and automation efforts.

2. State of Funds Automation in APAC

• Growth Potential: APAC markets are attractive for investment due to increasing liberalisation, investor education, and demographic suitability.
• Fragmented Maturity: The region has a fragmented level of automation and standardisation due to differing regulatory environments, operational norms, and economic priorities.
• Automation Rates: APAC lags behind Europe and the Americas, with automation rates estimated at 50% in the region, though some countries like Japan and Singapore have higher levels.
• Regional Passports: Emerging cross-border legal schemes such as the Asia Region Funds Passport (ARFP), Mainland-Hong Kong Mutual Recognition of Funds (MRF), and ASEAN Collective Investment Scheme (ASEAN CIS) are facilitating fund distribution across borders.
• Domestic Platforms: Countries like Indonesia, Thailand, and China are developing domestic funds hubs and platforms to improve automation and reduce reliance on manual processes.

3. New Technology and Its Impact on Funds Industry

• Blockchain and DLT: Blockchain technology is being explored for faster transaction settlement, lower costs, and transparent flows. It enables direct peer-to-peer transactions and reduces intermediaries.
• KYC Utilities: Online KYC registries, such as the SWIFT KYC Registry, are helping streamline compliance processes and reduce redundant document exchanges.
• Robo-Advisers: Robo-advisers are gaining traction due to their cost-effective, high-quality investment advice and accessibility to younger and less-privileged investor groups.
• Technological Challenges: Legacy systems, local standards, and a lack of industry-wide adoption of international standards like ISO 20022 continue to hinder automation progress.

Key Trends and Developments

• Regional Passports:
  • ARFP: Launched in 2016, involving Australia, Japan, Korea, Thailand, and New Zealand.
  • MRF: Jointly launched by China and Hong Kong in 2015, allowing eligible funds to be distributed across jurisdictions.
  • ASEAN CIS: Launched in 2014, enabling fund managers to offer products directly to retail investors in participating countries.
• Domestic Fund Platforms:
  • Examples include KSEI’s S-Invest, SET’s FundConnext, CSDC’s Fund Central Data Exchange, and others.
• SWIFT and ISO 20022: SWIFT is leading the transition to ISO 20022, which supports both domestic and cross-border fund transactions.

Ingredients for a Vibrant APAC Funds Industry

• Interoperability: Enhancing infrastructure and network interoperability to facilitate communication and automated processing.
• Standardisation: Aligning with international standards like ISO 20022 to improve operational efficiency and reduce risks.
• Regionalisation Initiatives: Leveraging regional passporting schemes to streamline cross-border fund distribution.
• Collaboration and Leadership: Encouraging industry-wide collaboration and clear regulatory guidance to drive automation and standardisation.

Vision 2025

• The paper envisions a more automated, standardised, and interconnected funds industry in APAC by 2025.
• This will require continued efforts in harmonising regulations, improving technology infrastructure, and promoting cross-border connectivity.
• A unified regulatory framework and increased use of international standards are expected to play a pivotal role in achieving this vision.

Conclusion

Funds automation in the Asia-Pacific region is on an upward trajectory, driven by regional passporting schemes, technological advancements, and industry collaboration. While challenges remain, the adoption of international standards and the development of domestic and regional platforms are expected to enhance operational efficiency, reduce costs, and improve investor access. A collective effort by regulators and market participants is essential to realising the full potential of automation in the APAC funds industry.