The Heads of Agreement provides for a Confirmation Stage under which IWL will assist ASX to assess FundLink's fit with ASX FundConnect's business requirements. To date, preliminary discussions, and a high level review of IWL's FundLink software functionality, have been encouraging. While the Confirmation Stage is progressing, the parties intend finalising the terms of their commercial agreement and agreeing on an implementation project plan for the evolution of the complete ASX FundConnect service technology. The agreement between ASX and IWL provides significant advantages in three main areas. Firstly, it is expected that ASX FundConnect will be able to offer greater functionality at the point of initial roll-out. Secondly, the Agreement will allow for a more cost effective development path for ASX FundConnect compared to the alternative of building the core functionality in its entirety. Thirdly, IWL will facilitate connectivity to ASX FundConnect through its existing financial planning software applications, potentially delivering a critical mass of financial planner distributors to the service.
Commenting on the announcement, Mr Chris Hamilton, ASX's Executive General Manager Clearing and Settlement, said "the alliance with IWL offers the opportunity for fast tracking the development of ASX FundConnect. IWL's FundLink software will provide an important component of our service proposal, and will help us deliver ASX FundConnect to our customers in a timely and cost effective manner".
Mr Otto Buttula, CEO of IWL added: "Following discussions by both IWL and ASX with various parties over the past six months, we jointly concluded that an alliance between ASX and IWL would provide the greatest certainty in delivering this important industry solution. We are delighted that ASX chose to move forward with IWL's FundLink technology and are excited with the opportunities that an alliance with ASX can provide to all our stakeholders, in particular our financial adviser customers."
The Confirmation Stage and further negotiations will take about two months, after which time the parties intend to conclude a formal alliance.
Notwithstanding IWL's commitment to develop connectivity between its front end financial planning software systems and ASX FundConnect, both ASX and IWL recognise the necessity of ensuring ASX FundConnect facilitates connectivity with as broad a range of industry participants and their service providers as possible. ASX will ensure that other prospective connectivity providers are not disadvantaged by the IWL alliance. Connectivity options to ASX FundConnect will be made available to the industry at large simultaneously with their release to IWL and where possible, will utilise established industry and vendor protocols.
About ASX FundConnect
ASX is developing ASX FundConnect as a key part of its overall strategy to develop new market place services. ASX FundConnect will provide a transaction-processing service facilitating straight-through-processing capabilities for the unlisted managed funds and superannuation industry. The service will link the diverse range of industry participants (including financial advisers, dealer groups, brokers, fund managers, IDPS providers, custodians and margin lenders) to enable transaction processing to be automated.
In offering ASX FundConnect, the ASX is aiming to extend the benefits of automation that have been realised for equities and other traded securities to unlisted managed funds. Since launching the service proposal to the industry in December 2001, ASX has developed detailed user requirements for the service in conjunction with the industry. It has also undertaken detailed evaluation of the technology options available for the development of the ASX FundConnect service. The alliance with IWL represents one important outcome of this evaluation process.
As previously advised to industry participants, Mark Spiers, recently appointed Project Director for ASX FundConnect, is also a non-executive director of IWL. To ensure that conflicts of interest are avoided, Mr Spiers has been excluded from discussions regarding the ASX and IWL software development alliance. IWL has also agreed that ASX Supervisory Review, (a wholly owned subsidiary of ASX which operates independently of the ASX Group's board and management) will directly oversee supervision by ASX of IWL as a listed entity. This brings ASX's listing supervision of IWL into line with that of other listed entities that have a commercial relationship with ASX.
About IWL
IWL Limited is a diversified financial services technology company. Its business interests span:
Front-End Financial Advisory Software - where it is Australia's No 1 supplier with in excess of 5,400 licensees. Key brands include VisiPlan and LLINK as desktop software, and VisiWeb as an online solution.
Web-based, Client Centric STP & Wrap Reporting Middleware - with FundLink being a major component of this sphere of activity. Other applications of this middleware continue to be commercialised within major Dealer Groups.
Research - these are marketed under the InvestorWeb brand and encompass coverage of Managed Funds and ASX Equities. Retail coverage is provided via www.investorweb.com.au.
Products - This incorporates a newer pursuit for the business involving partnering 3 rd party providers of transaction solutions, such as ASX Equities, Loans and Risk.
In November 2001, IWL was ranked the 4th fastest growing business in Australia, according to the BRW Fast 100 list for 2001. More recently, IWL Limited was recognised as the 12th fastest growing technology company in Australia, by the Deloitte Technology Fast 50 Program.
