Information: For immediate release Friday 7 January 2000
NEW CHAIRMAN FOR INVESTMENT FUNDS INDUSTRY EMX INITIATIVE
The Association of Unit Trusts and Investment Funds (AUTIF) and
EMX Co are pleased to announce that Mr Nicholas Durlacher CBE has
agreed to become Non-Executive Chairman designate of EMX Co.
A Special General Meeting of AUTIF members is to be held on Friday
4 February 2000 and subject to membership ratification of the EMX
proposition, Mr Durlacher will be appointed its first chairman.
Nick Durlacher said:
"I am delighted to be involved in this imaginative development
by AUTIF on behalf of the investment funds industry. Modern electronic
technology will enable the industry to deliver its products with
lower costs and to higher standards, an essential part of meeting
the needs of existing and future investors."
Alan Ainsworth commented :
"This is excellent news for the progress of the EMX project
as it demonstrates an important degree of commitment to the long
term success of this industry initiative. We are convinced that
the arrival of Nicholas Durlacher will add greatly to the successful
completion of our plans."
Nicholas Durlacher has been Chairman of the Securities and Futures
Authority (SFA) since 1995. He was elected a Member of the Stock
Exchange in 1971 and became a Partner of the member firm Wedd Durlacher
Mordaunt in 1972. In 1982, with the formation of the London International
Financial Futures Exchange (LIFFE), he became the Managing Director
of Wedd Durlacher Mordaunt Futures, which in 1986 became part of
BZW. He is presently Director of Barclays Capital. He served as
a Director of LIFFE from 1984-1995 and Chairman from 1992-1995.
For further information please contact:
Alan Ainsworth, Chairman AUTIF Tel: +44 (0)207 464 5730
Philip Warland, Director General AUTIF Tel: +44 (0)207 831 0898
Caroline Lee, Chief Executive EMX Tel: +44 (0)207 831 0898
Nicholas Durlacher, Chairman SFA Tel: +44 (0)207 676 3184
Anne McMeehan, Director of Communications AUTIF Tel: +44 (0)207 831 0898
Notes to Editors:
- EMX Co is a wholly-owned subsidiary of AUTIF.
- The EMX initiative will provide an electronic dealing system
for the investment funds industry. It is designed to ensure that
all sections of the industry and customers will over time benefit
from lower costs, greater accuracy, improved service levels and
the ability to process much higher volumes of business. This last
point is particularly valid in such areas as stakeholder pensions.
- Seminars have been held with member companies over the last
2 years, with a further series taking place throughout January.
- The detailed design of EMX has been agreed and a contract has
been finalised with Mutual Fund Technologies Limited, a subsidiary
of Fidelity Investments. The aim is to commence live running in
June 2000.
- 82 industry investment providers, advisers and service suppliers
have signed Statements of Intent to participate in EMX (as at
7 January 2000). These companies represent some 60% of the industry
by funds under management. In addition, 6 of the major third party
administration firms have committed to the system.
- The project has been funded by a group of four major sponsors
and AUTIF. Once the system goes live the system should be self-financing.
- Interim funding of £2.1-£2.4million is sought via an increase
in AUTIF subscriptions. It is proposed that the additional subscription
to fund EMX will be 75% of the 2000 subscription.
- The AUTIF Constitution empowers the Executive Committee to set
subscriptions, however, because of the significant increase proposed,
the membership is to be given the opportunity to question, comment
and vote on the issue at a Special General Meeting on Friday 4
February 2000.
- It is proposed that Mr Nicholas Durlacher CBE be appointed non-executive
chairman of EMX Co. He is presently Chairman of the Securities
and Futures Authority. (SFA general telephone enquiries – Tel:
+44 (0)20 7676 3232.)
- The Board of EMX Co will be restructured to represent the range
of participants in the system.
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