FundsXML is a data transfer protocol allowing B2B and B2C activities in the mutual fund sector. The development of the standard was pushed ahead by various companies in order to achieve the integration of numerous working processes in the mutual fund sector, enclosing the foundation of a fund and the system of registration as well as the electronic data exchange, beyond the borders of companies and countries. The focus is put on the sales activities of the companies using the standard.

Whereas all kinds of mutual funds shall be integrated into the standard in the course of time, the focus is put on funds open to the general public during the first step.

With involvment of the original members FundsXML was developed as an open and free of charge sector standard for mutual fund information.

The development of the FundsXML standard was accompanied by public relations work to prevent the simultaneous development of a comparative standard.

The main focus lies on creating and establishing a sector standard for the exchange of mutual fund information. This new standard shall not only be accepted by domestic business partners but also be used by international business partners. Beyond this, emphasis is put on the low cost and easy realization and organisation. By striving for a protection of investment for the systems based on FundsXML, a broad distribution of the standard shall be achieved and third parties shall be provided opportunities to contribute to further developments of the standard. To ensure that possibly incurring claims for damages can be put down and to protect the original memeber's copyrights, the user's agreements and conditions were set out in writing. The Mozilla Public Licence (MPL) was used as a sample. The MPL offers everyone the possibility to use the licensed material at his own risk. It also prevents that similar or different publications are being published under the same name as an already existing publication and therefore protects the originator's rights.

To keep decision making short and ensuring the fast development of the standard, it was developed by small working groups. The working groups presented their results to the FundsXML Standards Committee (being formed by the original members) in order to let the committee inspect and approve of the standard. The working groups are put together interdisciplinarily, with experts from product management, sales and IT contributing to the projects.