Embargoed Until: 12.00hrs Friday 4 February 2000

AUTIF MEMBERS OVERWHELMINGLY GIVE GO-AHEAD FOR INDUSTRY ELECTRONIC TRADING INITIATIVE

At today’s Special General Meeting of Members of the Association of Unit Trusts and Investment Funds (AUTIF) an overwhelming majority of member companies voted in favour of its proposal to fund the industry’s electronic trading initiative, EMX.

Companies representing more than 75% of funds under management attended the SGM. 90% of those attending voted in favour. This now means that EMXCo, the wholly owned subsidiary of AUTIF, established specifically to run the initiative, can press ahead with its plans to introduce a common set of high grade business standards for transactions in the unit trust and investment funds industry.

Alan Ainsworth, Chairman of AUTIF stated:

"This is an excellent day for the industry. I am delighted that AUTIF member companies have agreed to support this initiative. It is an important step forward in terms of improving standards of service to customers and their advisers, controlling industry costs and fuelling the long term growth potential of this vital component of the UK savings and investment industry."

For further information please contact:

Alan Ainsworth, Chairman, AUTIF - +44 (0)20 7464 5730
Philip Warland, Director General, AUTIF - +44 (0)20 7831 0898
Caroline Lee, CEO, EMXCo - +44 (0)20 7831 0898
Clare Arber, PR Manager, AUTIF - +44 (0)20 7831 0898
Anne McMeehan, Director of Communications, AUTIF - +44 (0)20 7831 0898
Nicholas Durlacher, Chairman, EMXCo - +44 (0)20 7676 3184

Notes to editors:

1. EMX Co is a wholly-owned subsidiary of AUTIF.
2. 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.
3. The detailed design of EMX has been agreed and a contract has been signed with Mutual Fund Technologies Limited, a subsidiary of Fidelity Investments. The aim is to commence live running in June 2000.
4. 98 industry investment providers, advisers and service suppliers have signed Statements of Intent to participate in EMX. 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.
5. The project was originally funded by a group of four major sponsors and AUTIF. Once the system goes live the system should be self-financing.
6. Interim funding of £2.1-£2.4million was sought via an increase in AUTIF subscriptions. It was proposed and agreed that the additional subscription to fund EMX would be 75% of the 2000 subscription.