JP Morgan is planning to shut down its fund transfer agency business in the UK this year.
The major back-office services offered by the transfer agents include issuing and cancel certificates in fund ownership, acting as an intermediary for the fund manager and handling lost, destroyed, or stolen certificates as well as keeping records for investors on fund transactions and shareholder voting.
However, JP Morgan Europe will continue to offer services to non-UK domiciled funds.
The transfer agency business at JP Morgan currently employs more than 400 people in Ireland, Luxembourg and the UK and manages funds totalling £500 billion of assets.
JPMorgan has declined to comment on the closure.
Additionally, the move has encouraged Schroders to launch a new transfer agency service for its Cazenove fund range, under which an administration fee 0.15% will be applied to the Cazenove funds from 24 March.