One of the biggest benefits is that having one single contract means substantial savings are made by eliminating the need for multiple contracts between every pair of companies.
It also means that:
• Everyone has the same rules, liability and commitment
• There is a logical and fair apportionment of risk
• It provides a simple system which is comprehensible
• It decreases disputes and uncertainty as to liability
Members have access to the TeX Register, a secure database which provides transfer information for all TeX members along with contact details in the event of any query. This information can also be downloaded for direct import to internal systems and records.
In addition to the above, all members sign up to conforming with the agreed service level agreements thereby ensuring both cash and in-specie transfers will be completed in a timely manner.
Not convinced yet? Have a look to see who else is a TeX member here.
Many firms want to join TeX at the earliest opportunity as early joining brings a number of benefits. Therefore, we have a 2-stage process for joining. You can read more on each stage below and complete the relevant forms when your company is ready.
This will indicate your intention to process re-registrations and also to move towards electronic messaging in order to facilitate those transactions. Simply complete the TeX Joining Form to start the onboarding process.
There is a one-off joining fee, payable after you have signed the TeX Joining Declaration which will be sent to you via our digital identity platform YOTI after your application has been submitted. This fee, which is applicable to all full members, is £5000 + VAT.
The benefits of joining will be a key indicator to the FCA that firms who join are committed to improving standards. We do know from comments in previous FSA documents that: “Given the TISA initiative, which we support, we do not think it is appropriate for us to set prescriptive rules regarding timescales for re-registration at this stage.” (FSA Policy Paper PS11/9 Platforms). As they see firms join TeX, the FCA will continue to leave the industry to manage this matter without additional regulatory constraints.
Joining TeX will allow you to participate in relevant TeX Groups and access the members only area of the TeX website but does not provide access to the TeX register and other secure services reserved for registered members.
When you are ready to send/receive ISO 20022 messages and need the legal agreements necessary when the client’s signature/authorisation remains with their new provider, you need to take this second and final step to go onto the Register of Members by completing the TeX Registration Form. The annual membership fee is payable after you have signed the TeX Registration Declaration which will be sent to you via our digital identity platform YOTI after your application has been submitted. The membership year runs 1 July to 30 June. Completing the TeX Registration Declaration includes signing up to be bound by the Contract Terms and other associated documents and gives you the reassurance that all the liability risks are then covered.
The categories of membership are: Service Provider; Asset Manager; Multi-Role Member (i.e. both of the previous categories operating under one legal entity) or Pension Provider.
Service Provider: a firm who is a product provider (other than an operator of a regulated collective investment scheme or an investment trust savings scheme as described in paragraph (iii) of the FCA Handbook’s definition of product provider), an ISA manager (providing funds from more than one fund manager) or a platform service provider ( as defined by FCA). The annual fee for this category is £3,400 + VAT.
A firm falls into the Service Provider category if they meet the FCA definition of a Platform Service as a service which:
(a) involves arranging and safeguarding and administering assets; and
(b) distributes retail investment products which are offered to retail clients by more than one product provider;
but is neither:
(c) solely paid for by adviser charges; nor
(d) ancillary to the activity of managing investments for the retail client.
Asset Manager: a firm who is responsible for the maintenance of a fund’s register of holders and repurchasing of units that are to be redeemed. This category also includes fund managers who offer an ISA wrapper which includes only their own funds. The annual fee for this category is £2,270 + VAT.
Multi-Role Member: if one over-arching company operates both a Service Provider and an Asset Manager, then they can join as a Multi-Role Member with an annual fee of £5,670 + VAT. This provides no difference in overall cost but a Multi-Role Member would get just one vote.
Pension Provider: is a party who is responsible for the provision and administration of a Pension Scheme or if one is appointed for the relevant Pension Scheme, the Pension Administrator. This registration is free to all members who currently have an active membership under the above listed categories. If you are not currently registered the annual fee for this category is £2,270 +VAT.
To register in one of the above categories, firms need to have at least one of the following Financial Services Firm Register permissions:
So if a firm has none of the appropriate permissions, is not a pension provider, is not a fund manager nor has a contractual relationship with any underlying client and therefore is not a product provider, ISA manager or offers a Platform service, then they would be an associate.
The fees for associates are a £2,000 + VAT one-off joining fee and a £1,130 + VAT annual fee. If this category applies to your firm then please contact firstname.lastname@example.org for the appropriate application documents.
You will also need to download the TeX Notes to Joining and Registration Forms to read in conjunction with the forms.
You may also find it useful to read the TeX Onboarding Guide which describes the onboarding activities for new members of TeX and the TeX Onboarding Common Issues document which details common issues for potential members to consider as part of their onboarding process.
You are welcome to complete the respective Joining/Registration Form (linked above). You may prefer to meet with one of the TISA directors to discuss membership prior to doing this. If so, you are very welcome to contact email@example.com to arrange a meeting.