JP Morgan pulls transfer agency services from UK funds

JP Morgan Europe will cease offering transfer agency services to UK funds during 2014.

Transfer agents’ main services include issuing and cancel certificates to reflect changes in fund ownership, acting as an intermediary for the fund manager and handling lost, destroyed, or stolen certificates.

JP Morgan Europe will still offer services to non-UK domiciled funds.

Currently, JP Morgan Europe provides transfer agency services to funds totalling £500bn of assets. These are funds domiciled in the UK, Ireland and Luxembourg. 

Among the services offered by JP Morgan Europe included processing trades by investors, offer 24-hour support for investors and an online reporting portal, according to the firm’s website.

JP Morgan has declined to comment.

The decision to pull services from the UK prompted Schroders to find a new transfer agency service for its Cazenove fund range it owns.

This means a 0.15 per cent administration fee will be applied to the Cazenove funds from 24 March, as IFDS assumes transfer agency duties of the funds.

Previously, the funds had admin charges as low as 0.04 per cent. The move means most Cazenove funds will see their ongoing charges rise.