Brown Brothers Harriman & Co. (BBH) has launched a service with several Taiwanese banks and fund promoters that will convert previously fax-based order flows into ISO 20022 industry-standard format messages and transmit them through the SWIFT network, while providing a corresponding order confirmation message from the transfer agent.
BBHs Infomediary platform currently supports SWIFT-based order flows from Taiwans SWIFT-enabled distributor banks to global fund promoters.
The Infomediary solution now enables distributor banks to send order files directly from their accounting systems to globally based fund promoters/transfer agents and in turn automatically receive corresponding status and confirmation messages back into the accounting system, enabling straight through processing (STP) of a previously manual and cumbersome process.
The initiative has won the support of the Asian Fund Automation Consortium (AFAC), whose members account for approximately 80% of Asia cross-border fund flows, and other global fund promoters.
The AFAC participants with BBHs initiative include AllianceBernstein, Baring Asset Management, BlackRock, Fidelity International, INVESCO Asset Management, Janus Capital Asia Limited, J. P. Morgan Asset Management and Schroder Investment Management LTD. E. Sun Bank in Taipei is among the first distributor banks to test and adopt the service.
BBH is also working with additional global asset managers and distributor banks in the region who are interested in the solution.
Asia is a major growth market for cross-border fund promoters, says Joe Conway, global head of sales and marketing for BBH Infomediary, based in Hong Kong. Lack of fund order straight through processing in Asia has been one of the industrys most intractable problems for over 10 years, with 95% of fund order flows being processed manually. BBHs focus on a solution for the Taiwan market is driven by client guidance as to where they face the greatest challenge. We are pleased that BBHs Infomediary connectivity and messaging platform could provide a solution to automate the flows for both fund promoters and distributors, reducing risk in the process.