Market leaders keen to adopt SWIFTNet Funds messaging to reduce the cost of a paper-based funds transfer from A$20 to approx A$0.20c

Global provider of secure financial messaging services SWIFT (Society for Worldwide Interbank Financial Telecommunication), today announced that automated funds transactions in the Australian financial services sector will go live in early 2009.

An information forum on the market initiative to automate Australian investment funds transactions will be hosted on Tuesday, 2 December at the NSW Trade & Investment office at the MLC Centre, Sydney from 12:30pm.

Announcing details of the early introduction date, SWIFTNet Funds project leader Tim Hamer, said acceptance for automated funds transfers was growing rapidly as sector leaders in the Australian financial services industry gained the confidence to embark on their own messaging projects. Additional fund market participants are expected to follow once automated procedures go live.

Electronic messaging for funds transactions is already a priority for nine leading participants in the SWIFTNet Funds automation project. These market leaders are seeking to reduce the risks associated with manual processes, increase potential scalability and to take advantage of the reduction in costs for completing paper-based funds transfers in Australia. These costs have been assessed as approx A$20 for a paper-based transaction compared to approx A$0.20 for an automated procedure.

“The adoption of SWIFTNet Funds as the industry standard has been critical in gaining acceptance for automated funds transfers,” he said.

“Using SWIFT, automated funds transaction processing in Australia could create an approx 20% reduction in the regulatory capital required for specialist banking providers such as transfer agents and distributors, equivalent to savings of approx 4% of regulatory capital at the level of universal banks active in these services.”

Mr Hamer said the potential benefits of eliminating paper-based transactions included:
- Significantly reduced transaction fees and error rates
- A reduced need for manual processing and easier reconciliation processes
- Removal of scalability constraints
- Increased cut-off times for same-day transactions

Committing to standardised funds automation in Australia are Ausmaq, Barclays Global Investors, BNP Paribas Securities Services, HSBC Securities Services, JP Morgan Chase Bank, Macquarie Adviser Services, National Custodian Services, RBC Dexia Investor Services, and Vanguard Investments Australia.

Tim Hamer said the free information forum planned for Tuesday, 2 December was being hosted at the NSW Trade & Investment offices at the MLC Centre, Sydney from 12:30pm. A short cocktail reception would follow at 5pm.

He said a highlight of the SWIFT forum will be a panel discussion covering topics and issues from the day. It will feature Brian Thomas, Head of Retail Funds Management at Perennial Investment Partners; Tom Sargent, Division Director, Macquarie Adviser Services; and Gordon Little, Director, Fund Services, RBC Dexia.

It will follow presentations including an update on the Australian financial markets by Gary Johnston, National Manager - Financial Services, Austrade; outcomes from the funds advisory group provided by Rob Brown, CEO, Ausmaq and insight from Steve Wallace of Idea Group about the issues and successes of the SWIFTNet Funds adoption in the UK Pensions market and International Hedge Funds market.

Registration numbers for the forum have already reached 78 and 100 guests are expected by the event date.

-ENDS-

Note to Editors:

About SWIFT
SWIFT is a member-owned cooperative that provides the communications platform, products and services to connect over 8,300 banking organisations, securities institutions and corporate customers in more than 208 countries. SWIFT enables its users to exchange automated, standardised financial information securely and reliably, thereby lowering costs, reducing operational risk and eliminating operational inefficiencies. SWIFT also brings the financial community together to work collaboratively to shape market practice, define standards and debate issues of mutual interest. For more information about this press release, please refer to our website: www.swift.com or contact the SWIFT press office:

For more information about this media note, please refer to our website: www.swift.com or contact the SWIFT press office in Australia:

Kenny McGilvary or Grahame Cox
Upstream Australia
Tel: +61 2 9377 1111
Email: kenny.mcgilvary@upstreamaustralia.com