For immediate release: Tuesday 3 November 1998

AUTIF INVESTMENT FUNDS CONFERENCE – INDUSTRY PROMISE TO REVOLUTIONISE CUSTOMER SERVICE

The UK Unit Trust and Investment Funds industry today reinforced its commitment to the radical improvement of customer service by setting out its plans for the introduction of electronic trading in the first half of 1999.

Stephen Patten, director of the AUTIF sponsored programme, announced in his speech at the AUTIF conference:

"Over the last 18 months our objective has been to lay firm foundations for the gradual introduction of common industry standards for dealing, settlement and valuation procedures. We’re not looking for a ‘Big Bang’ solution, where everything is delivered all at once. And we certainly don’t expect to have everyone on line from Day 1. It’s likely to be the larger product providers who will be the earlier users of the service and in the initial stages, it will only be accessible by professional advisers."

He continued:

"But there has been massive interest expressed by a wide range of both product providers and professional advisers. There is a clear need for improved levels of efficiency throughout the industry and in time, it is only logical to extend this to include a much wider, public audience. Pressure on administration costs makes this the only viable alternative for the industry, but speed, accuracy and efficiency are essential qualities that clients will find the most compelling reasons for transacting business this way in the future."

Paul Loach, former Chief Executive of LGT Global Asset Management, has agreed to act as interim Chairman of the Electronic Message Exchange (EMX) service company. His prime task is to oversee the delivery of a workable service structure with due regard to the potential long term needs of the industry as a whole.

He commented:

"The most important thing is to get the balance right. The service is for the whole industry but companies that are prepared to put up capital to get this programme underway have every right to some kind of pay-back, whether in financial or service terms. Similarly, the less efficient should not expect a ride on the back of their more efficient counterparts. We have to create an environment in which all participants pull their weight.

If it were that easy it would have been done before, but the UK industry now seems to have faced up to the fact that unless it takes a strong grip of this opportunity, it is likely to lose the chance to control its future once and for all."

For further comment please contact:

Anne McMeehan Director of Communications AUTIF 0171 831 0898
Lewis McNaught Chairman AUTIF 0171 831 0898