Investor Solutions Working Group

Purpose

There is a clear interconnectedness between end-investors and Securities Services providers. End-investors invest via various distribution channels – such as asset managers, fund managers and online wealth-distribution platforms. These intermediaries provide Securities Services providers with transactional information. In return, Securities Services providers supply data and reports back to the distribution channels for onward provision to the end-investor clients.

As outlined in the 2024 Future of Securities Services paper, the last four years have seen significant changes in investor behaviour resulting from macroeconomic and technological upheavals. Given this interconnectedness, the Securities Services industry is also impacted by the drivers of change faced by investors. In order to be able to provide the services that these investors – and more specifically end-investors – are looking for, the Securities Services industry needs to understand end-investor requirements, the challenges faced by investors when investing and, in particular, any issues that may deter investment.

ISSA has therefore created an Investor Solutions WG. This WG will look to provide educational and informational tools to assist ISSA members, distribution channels and end-investors design solutions that meet the investors’ needs.

Scope

In 2025, the WG will focus on:

Phase I:

• Outlining the information flow between the end-investor and Securities Services provider
• Understanding what services the end-investor is looking for
• Researching the challenges faced by end-investors when making investments in capital markets (whether traditional assets, private markets, funds, digital assets or cryptocurrencies)
• Understanding any barriers to investment

Phase II:

• Analyzing the largest global mutual fund markets (Luxembourg, Singapore, Ireland, HK, Australia, US, Netherlands, Sweden, Switzerland, Canada) to better understand the specific challenges faced by end-investors when investment in funds
• Identify potential solutions that may be available in other markets

Out of scope for the WG will be:

• Direct investor clients of Securities Services providers such as Investment Managers
• Front, middle or back-office platform solutions
• Trade management and NAV production

Key Deliverables

Key deliverables will include:

• Creation and distribution of an end-investor survey focusing on the in-scope areas outlined above
• Completion of a report based on the key findings of the survey
• Analysis of where the Securities Services industry can assist in supporting end-investor requirements

Key Outcomes

• To educate Securities Services providers, as well as the broader financial industry, on the information flows between end-investors and Securities Services providers
• To ensure all parties involved in financial markets have a better understanding of the requirements, challenges and barriers to investment faced by end-investors when investing in financial markets
• Enable the Securities Services providers to design appropriate solutions

Publications

TBC

Working Group Co-Chairs

• TBC

Executive Sponsor

• TBC

Institutions Represented by Experts in the Working Group

• TBC