Operational Working Group
This document has been compiled for the use of TA Forum members only and is for guidance purposes.
This document must not be copied or distributed without written consent from the TA Forum.
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Maximising Digital
Communication
December 2021
Operational Working Group
This document has been compiled for the use of TA Forum members only and is for guidance purposes.
This document must not be copied or distributed without written consent from the TA Forum.
2
Contents
1 Document purpose ... 3
2 Retail investor channels ... 4
2.1 Functionalities ... 4
2.1.1 Marketing & communicating the benefits of digital communication ... 4
2.2 Adoption strategies... 5
2.2.1 Mandating use of digital communications ... 5
2.2.2 Disincentivising use of non-digital communications ... 6
2.2.3 Incentivising use of digital communications... 6
2.2.4 Supporting an investor in utilising digital features ... 6
2.2.5 Continued browser/OS support ... 6
2.2.6 Further considerations in maximising digital adoption ... 6
3 Institutional investor channels ... 7
3.1 Functionalities ... 7
3.1.1 Marketing & communicating the benefits of digital communication ... 7
3.2 Adoption strategies... 8
3.2.1 Mandating use of digital communications ... 8
3.2.2 Disincentivising use of non-digital communications ... 8
3.2.3 Incentivising use of digital communications... 8
4 Summary of adoption strategies ... 9
Operational Working Group
This document has been compiled for the use of TA Forum members only and is for guidance purposes.
This document must not be copied or distributed without written consent from the TA Forum.
3
1 Document purpose
This document has been produced to provide awareness and potential options for encouraging digital adoption for both Institutional and retail investors (advised or direct).
A summary of the current typical functional capabilities that exist has been captured together with potential adoption strategies that may be considered by Fund Managers to encourage greater use of digital communication channels going forward.
It is also important to note that due to the pandemic over the past 18 months, digital adoption has increased across the industry however, a significant proportion of existing investors remain paper based.
Please refer to the table at the end of this summary paper which documents recipient types, channels, functionalities, and high-level potential adoption strategies for consideration.
Operational Working Group
This document has been compiled for the use of TA Forum members only and is for guidance purposes.
This document must not be copied or distributed without written consent from the TA Forum.
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2 Retail investor channels
The two main channels of digital communication available to a retail investor could include:
• An online portal and/or mobile app
• Inbound and outbound email communications
2.1 Functionalities
The degree to which an investor will adopt digital communications is limited to the extent of the features available to them via these channels. Full utilisation of these channels would enable a retail investor to:
• View a current valuation of holdings
• View historic transaction details
• Create a dealing account
• Submit a dealing instruction
• Receive digital documentation including:
o Contract note/trade confirmation o Tax vouchers
o Periodic statements o Corporate actions
• Provide digital documentation including due diligence
• Update personal details
• Update bank account details
• Maintain any standing instructions including:
o Distribution preferences o Regular saver/withdrawals
• Submit a general enquiry
2.1.1 Marketing & communicating the benefits of digital communication
Investors may have received previous communications detailing the benefits of taking up digital services. However, it’s important to ensure that those messages are reiterated at every opportunity. Fund Managers may want to consider speaking to non-adopters to understand their reasons to make future communications more effective.
Benefits of digital adoption to the investor include:
Operational Working Group
This document has been compiled for the use of TA Forum members only and is for guidance purposes.
This document must not be copied or distributed without written consent from the TA Forum.
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• 24/7 access to up-to-date portfolio information
• No postal delays or items being lost in the post
• Improving service and response times for investors
• Environmental benefits in saving paper
• Reduced in and outbound paper communication ultimately reducing administration costs
Digital adoption should be referenced on all outbound correspondence where possible, directing an investor to where they should go to register or offering email as a means of communication. Any scheme or supplementary materials, structured templates and forms available to the investor should also communicate digital channels.
Each interaction with the investor should be considered, for example an investor who makes contact by telephone could be informed of the digital offering and directed to use an online portal
2.2 Adoption strategies
The following strategies and approaches should be considered as part of maximising digital adoption. The appropriateness of each approach will vary and in consideration the Fund Manager should account for factors including:
• Demographics of the book
• Age of the book
• Is the product adviser led or direct to customer
2.2.1 Mandating use of digital communications
The Fund Manager could consider opting to mandate use of digital communications. This would mean no longer issuing correspondence in paper form and not accepting instructions by any other method. Mandating digital adoption would be dependent on having a fully functional and robust means of communicating digitally and care must be taken to consider TCF requirements and catering for vulnerable investors. This strategy may only be applicable to new investors or new funds where the digital proposition is well known from the outset and investors sign up on that basis. Alternatively, it may be limited to new investors within existing funds, where the Fund Manager may only accept new investors via digital channels. Similarly, it may be appropriate where investment is adviser led, that the Fund Manager mandates that the adviser interact digitally.
Operational Working Group
This document has been compiled for the use of TA Forum members only and is for guidance purposes.
This document must not be copied or distributed without written consent from the TA Forum.
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2.2.2 Disincentivising use of non-digital communications
The Fund Manager might consider applying a fee for the provision of paper correspondence, however full consideration should be given to TCF and vulnerable investor scenarios.
2.2.3 Incentivising use of digital communications
In consideration of cost savings in driving adoption, it might be appropriate to incentivise investors to communicate digitally. Examples of incentives might include:
• Sending the investor gift vouchers
• Offering reduced charges
• Depositing funds into a cash account
2.2.4 Supporting an investor in utilising digital features
In any drive towards digital adoption the channel must be intuitive and user-friendly. Whilst much of this might be dictated by the user interface, the product should be fully supported by publishing FAQ documents, guides or online tooltips. Sufficient tools should be available to the customer support team who can assist the investor if they require any assistance in using the online features, whether via webchat or telephone. Any support team should be fully trained to mitigate any frustration the investor may be expressing and making the digital experience as positive as possible.
2.2.5 Continued browser/OS support
Ongoing updates to support browser and operating system changes will continually be required. Additionally, security measures against cyber threat should be kept up to date.
2.2.6 Further considerations in maximising digital adoption
• The TA should ensure that where the investor does communicate via email, that the email address is captured against the investor record
• Any structured templates or application forms should include capture of an email address
Operational Working Group
This document has been compiled for the use of TA Forum members only and is for guidance purposes.
This document must not be copied or distributed without written consent from the TA Forum.
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3 Institutional investor channels
There are some additional means of communicating with an institutional investor digitally, including:
• Messaging platforms such as EMX/Calastone
• Distributor portals
• Emails
• SFTP deliveries
3.1 Functionalities
The degree to which an investor will adopt digital communications is limited to the extent of the features available to them via these channels. Full utilisation of these channels would enable an institutional investor to:
• View a current valuation of holdings
• View historic transaction details
• Create a dealing account
• Submit a dealing instruction
• Receive digital documentation including:
o Contract note/trade confirmation o Tax vouchers
o Periodic statements o Corporate actions o Settlement reports
• Provide digital documentation including due diligence
• Update entity details
• Update bank account details
• Maintain any standing instructions including:
o Distribution preferences
• Submit a general enquiry
3.1.1 Marketing & communicating the benefits of digital communication
Digital adoption should be referenced on all outbound correspondence where possible, and during service meetings if held.
Operational Working Group
This document has been compiled for the use of TA Forum members only and is for guidance purposes.
This document must not be copied or distributed without written consent from the TA Forum.
8 Each interaction with the institutional investor should be considered, for example valuation requests or manual trade instructions.
3.2 Adoption strategies
It is reasonable to assume an institutional investor will be largely responsive to digital communication over non- digital. Maximising adoption should be supported by robust support of a particular channel(s) and ensuring these institutions are aware of the availability and benefits of such communication methods.
3.2.1 Mandating use of digital communications
The Fund Manager might consider the extent to which mandating use of these channels would be appropriate.
Support of a range of messaging platforms in addition to email communications would increase the viability of this approach.
3.2.2 Disincentivising use of non-digital communications
The Fund Manager might consider it appropriate to apply a fee for supplying paper correspondence.
3.2.3 Incentivising use of digital communications
In consideration of cost savings in driving adoption, it might be appropriate to incentivise institutional investors to communicate digitally. Examples of incentives might include:
• Offering enhance terms / reduced charges
• Improved levels of automation at the institution’s back office
Operational Working Group
This document has been compiled for the use of TA Forum members only and is for guidance purposes.
This document must not be copied or distributed without written consent from the TA Forum.
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4 Summary of adoption strategies
Recipients Channels Functionalities Adoption strategies
Retail investors (non- advised)
Investor self- service portal
Online and mobile Mandating use of the online self-service portal - new investors
Valuations Transactions Account opening
Dealing (buy / sell / switch) Mandating use of the online self-service portal - existing investors
Investor document receipt Incentivising use of the online self-service portal - this might include reduced charges/alternate share classes, vouchers, cash to invest etc
Investor document send Inviting investors to use the self-service portal - sending invites by email or post
Online enquiry Marketing/communicating benefits of the online service - 24/7 access, benefit the environment by saving paper, access on the go with a mobile app Bank details amendment Ensure the self-service portal is promoted on all
outbound correspondence until the investor has registered for online access
Change of personal details Create FAQ documentation, guides and tooltips, implement chat functionality and provide a helpline to assist investors who are not usually comfortable using an online service
Regular saver set up / change Ensure customer support teams are properly trained to support with queries or problems
Investor due diligence Ensure continued support for browser and O/S updates, and security measures against cyber attack Emails (in &
out)
Valuations Ensure email is featured prominently in all contact details sections of websites, outbound
correspondence including contract notes, statements, Transactions
Account opening
Operational Working Group
This document has been compiled for the use of TA Forum members only and is for guidance purposes.
This document must not be copied or distributed without written consent from the TA Forum.
10
Recipients Channels Functionalities Adoption strategies
Dealing (buy / sell / switch) tax vouchers etc, in all email signatures and all appropriate scheme documentation.
Investor document receipt Investor document send Enquiries (also including online web chat)
Bank details amendment Change of personal details
Regular saver set up / change Ensure customer support team are inviting investors to use email rather than send instructions by phone/post
Investor due diligence Ensure an email address is captured for the investor wherever possible by including on any structured instructions the investor might complete.
Retail investors (advised)
Investor self- service portal
Online and mobile Mandating use of the online self-service portal - new investors
Valuations Transactions Account opening
Dealing (buy / sell / switch) Mandating use of the online self-service portal - existing investors
Investor document receipt Incentivising use of the online self-service portal - this might include reduced charges/alternate share classes, vouchers, cash to invest etc
Investor document send Inviting investors to use the self-service portal - sending invites by email or post
Online enquiry Marketing/communicating benefits of the online service - 24/7 access, benefit the environment by saving paper, access on the go with a mobile app Bank details amendment Ensure the self-service portal is promoted on all
outbound correspondence until the investor has registered for online access
Operational Working Group
This document has been compiled for the use of TA Forum members only and is for guidance purposes.
This document must not be copied or distributed without written consent from the TA Forum.
11
Recipients Channels Functionalities Adoption strategies
Change of personal details Create FAQ documentation, guides and tooltips, implement chat functionality and provide a helpline to assist investors who are not usually comfortable using an online service
Regular saver set up / change Ensure customer support teams are properly trained to support with queries or problems
Investor due diligence Ensure continued support for browser and O/S updates, and security measures against cyber attack Emails Valuations Ensure email is featured prominently in all contact
details sections of websites, outbound
correspondence including contract notes, statements, tax vouchers etc, in all email signatures and all appropriate scheme documentation.
Transactions Account opening
Dealing (buy / sell / switch) Investor document receipt Investor document send Enquiries (also including online web chat)
Bank details amendment Change of personal details
Regular saver set up / change Ensure customer support team are inviting investors to use email rather than send instructions by phone/post
Investor due diligence Ensure an email address is captured for the investor wherever possible by including on any structured instructions the investor might complete.
Institutional investors
Messaging platforms - EMX/Calastone
Transactions Mandating use wherever possible Account opening
Dealing (buy / sell / switch)
Re-register/in-specie transfer Offer cheaper alternative share classes Valuations Support a range of platforms/providers
Operational Working Group
This document has been compiled for the use of TA Forum members only and is for guidance purposes.
This document must not be copied or distributed without written consent from the TA Forum.
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Recipients Channels Functionalities Adoption strategies
Trade confirmation Review institutions dealing manually and promoting support to investors
Distributor portal
Trade confirmation, settlement reports, distribution and valuation reports
Mandating use wherever possible Offer cheaper alternative share classes Support a range of platforms/providers
Review institutions dealing manually and promoting support to investors
Emails Valuations Ensure email is featured prominently in all contact details sections of websites, outbound
correspondence including contract notes, statements, tax vouchers etc, in all email signatures and all appropriate scheme documentation.
Transactions Account opening
Dealing (buy / sell / switch)
Investor document receipt Ensure customer support team are inviting investors to use email rather than send instructions by phone/post
Investor document send Enquiries (also including online web chat)
Bank details amendment Ensure an email address is captured for the investor wherever possible by including on any structured instructions the investor might complete.
Change of personal details Regular saver set up / change Investor due diligence
SFTP Valuations Support a range of platforms/providers
Transactions Providing technical support for setting up connections Dealing (buy / sell / switch) Promote feature on all outbound correspondence and
during any onboarding processes Settlement and distribution
reports
Mandating use wherever possible
IFAs Online and mobile
Operational Working Group
This document has been compiled for the use of TA Forum members only and is for guidance purposes.
This document must not be copied or distributed without written consent from the TA Forum.
13
Recipients Channels Functionalities Adoption strategies
IFA Portal for servicing investors
Valuations Mandating use of the online self-service portal - new investors
Transactions Account opening
Dealing (buy / sell / switch)
Investor document receipt Mandating use of the online self-service portal - existing investors
Investor document send Incentivising use of the online self-service portal Online enquiry Marketing/communicating benefits of the online
service - 24/7 access, benefit the environment by saving paper, access on the go with a mobile app Bank details amendment Ensure the self-service portal is promoted on all
outbound correspondence until the investor has registered for online access
Change of personal details Create FAQ documentation, guides and tooltips, implement chat functionality and provide a helpline to assist advisers who are not usually comfortable using an online service
Regular saver set up / change Ensure customer support teams are properly trained to support with queries or problems
Investor due diligence Ensure continued support for browser and O/S updates, and security measures against cyber attack Emails Valuations Ensure email is featured prominently in all contact
details sections of websites, outbound
correspondence including contract notes, statements, tax vouchers etc, in all email signatures and all appropriate scheme documentation.
Transactions Account opening
Dealing (buy / sell / switch)
Commission reports Ensure customer support team are inviting investors to use email rather than send instructions by phone/post
Enquiries (also including online web chat)
Bank details amendment
Operational Working Group
This document has been compiled for the use of TA Forum members only and is for guidance purposes.
This document must not be copied or distributed without written consent from the TA Forum.
14
Recipients Channels Functionalities Adoption strategies
Change of personal details
Change of firm details Ensure an email address is captured for the investor wherever possible by including on any structured instructions the investor might complete.
Regular saver set up / change Investor due diligence
SFTP Valuations Support a range of platforms/providers
Transactions Providing technical support for setting up connections Commission reports Promote feature on all outbound correspondence and
during any onboarding processes Back office
integration
Valuations Support a range of platforms/providers
Transactions Promote feature on all outbound correspondence and during any onboarding processes
Commission reports Mandating use wherever possible
