1. Peter De Proft Director General
5th FIAFIN CONGRESS
17 May 2011, Brazil
The FPP: The Idea and Evolutions
Peter De Proft
Director General

2. OUTLINE: FPP’s Origins: FPSG recommendations
What is the Fund Processing Passport?
FPP Versions 1.0, 2.0 and 3.0
Benefits of the FPPs
Creation of the FPP Portal
FPP Portal Today
Monitoring progress

3. I. FPP’s Origin: FPSG’s recommendations
As a result of the growing cross-border business and the open architecture, the inefficiencies in fund processing were seen as a problem
Moving towards more efficient and less risky arrangements for fund processing became an objective for EFAMA and the European investment industry
That is why EFAMA created the Fund Processing Standardization Group (FPSG) in 2003 to identify inefficiencies in cross-border fund processing and develop recommendations for removing them
EFAMA invited expert practitioners from a wide range of stakeholders to join the FPSG

4. I. FPP’s Origin: FPSG’s recommendations
The FPSG published recommendations in 2005, 2008 and March Their main goal is to :
Reduce operational costs and risks
Open the door to straight-through-processing
Improve customer service
Promote interoperability and competition between service providers

5. I. FPP’s Origins: FPSG’s recommendations
Examples of recommendations
Communications between industry players should be electronic and use ISO standard identifiers
The ISO should be the standard for electronic communications
Transfers of title of fund units should be processed electronically
The information required to calculate and pay commissions should be provided in a standardized way and timely fashion
Corporate actions should follow a standardized process and timeline, and
Fund managers should publish Fund Processing Passports

6. II. What is the Fund Processing Passport?
The FPP is a short, single, fully harmonized document containing all the key “operational” information that fund promoters should provide on their investments funds, at class level, in order to facilitate their trading.
The information covered includes:
ISIN code
Contract Details
Subscriptions/Redemptions Rules
Settlement details
Cut off times
….etc
The FPP contains 105 fields of relevant “operational” information, including a list of 77 “Core Data” items, with 49 mandatory items and 28 optional items. There is also possibility to attach local annexes to deal with local specific information.

7. III. FPP Versions 1.0, 2.0 and 3.0
Version 1.0 was published in June , together with a brochure.
Version 2.0 was published in May The agreed changes of substance were minimal, confirming the robustness of the first version.
Version 3.0 was published in April 2010.

8. IV. Benefits of the FPPs The FPP: For Fund Distributors The FPP:
Minimizes
redundancy checks
delays in processing transactions
errors in executing the orders
Provides all the information needed to:
avoid unnecessary steps
generate fewer errors
reduce cost
For Fund Managers
The FPP:
Delivers higher quality service by making easier to place a fund order, thereby satisfying customer needs
Speeds up the treatment of fund orders
Promotes the accessibility of standardized information
Reduces the need for call centres to address clients’ question

9. V. Creation of the FPP Portal
In 2008, the Board of Directors of EFAMA decided to create a FPP Portal to promote the distribution of FPPs on a global basis.
What was EFAMA’s motivation for creating their Portal?
To facilitate access to all existing FPPs from a single location
To raise the visibility, use and coverage of FPPs
To promote the completion of an effective single market for investment funds
To strengthen the competitiveness of the industry in terms of cost and quality
The Portal was opened on 28 June 2010.
“The opening of the FPP Portal is a fundamental step taken by EFAMA in its continued effort to strengthen industry standards to the benefit of investors. Fund managers, and specifically cross-border fund groups, should be pro-active in supporting this initiative, hence contributing to simplify fund-order processing and responding notably to the European Parliament’s call to push processing costs down.”
Jean-Baptiste de Franssu
EFAMA President

10. V. Creation of the FPP Portal
EFAMA hosts the FFP Portal on its website:

11. V. Creation of the FPP Portal
The Portal provides direct access to the FPP “Golden Copies”, i.e. the latest and most updated version of the FPP, by connecting the Portal users to the FPP providers (fund managers and FPP Primary Providers).
Thanks to its search engine, the Portal helps FPP users to find specific FPP. In this context, the Portal serves as a “window” for promoting FPP on a global basis.

12. V. Creation of the FPP Portal
The development of the Portal was undertaken in close cooperation with the so-called “FPP Primary Providers” (Finesti, FundConnect, KNEIP, OeKB and WM Datenservice), i.e. the services providers which have developed a new business line to help fund managers produce and update FPPs, and distribute them to the marketplace
The warm welcome of the project is reflected in the following quote from the leading expert in asset management in the European Parliament, Wolf Klinz (MEP):
 “I congratulate the industry for the creation of the FPP Portal and I hope this initiative will create a momentum for the adoption of the FPP as the European standard to make fund processing simpler and more automated.”
Dr. Wolf Klinz
Member of the European Parliament

13. VI. FPP Portal Today
The number of FPPs published already in the Portal is above 6,000.
76 Asset Management Companies that have already adopted the FPP Standard. There are mainly companies that are very active in the cross-border business.
Links are being created between the Portal and EFAMA’s member associations in order to highlight the FPPs available for the funds distributed in a specific country.
EFAMA remains active in the promotion of the FPP, encouraging
fund managers to produce FPPs for their funds
fund distributors to request FPPs from fund managers

14. VII. Monitoring progress
EFAMA together with SWIFT has started to publish report on automation and standardization of cross-border funds orders

15. VII. Monitoring progress
Total automation rate of orders received by a group of 31 transfer agents in Luxembourg and Ireland reached 75.4% during Q4 2010
In total, 23.5 millions orders were processed by these TAs (representing around 80% of total order volume) and 17.9 millions were processed automatically

16. VII. Monitoring progress
Total automation rate of orders received by a group of 13 TAs based in Luxembourg during Q reached almost the level for order givers based in Europe and Latin America (77-78%)
The ISO standard is more generalized in Europe (62%) than in Latin America (34%) and Asia (14%). This is an area where it would be useful to make more progress in the coming years!

17. THANK YOU FOR YOUR ATTENTION For information & feedback, please do not hesitate to contact us at or via the website of the EFAMA FPP Portal