Re-registration is set to undergo a “big bang” which will see the transfer of assets between platforms overtake the efficiency of pension and Isa transfers.
Speaking at a Money Marketing round table last week Nucleus chief executive David Ferguson forecast that electronic re-registration will shake up the process of moving assets from one platform to another by this time next year.
Ferguson said there are situations where re-reg is not carried out smoothly and although the platform often takes the blame, it can be due to an error on the part of the fund administrator.
He said: “This does not solve the problem for advisers but what will happen here is we will see a big bang and when electronic re-registration happens, re-registration will actually leapfrog over things like pension transfers and Isa transfers and become much more instantly effective.”
Ferguson expects to see a pilot on electronic re-registration within the next few months, with re-reg becoming fully operational by the middle of next year.
Almary Green Investments senior consultant Roy Durrant said that re-registration urgently needs to become a smoother process.
He said: “We need the ability to transfer from one service provider to another easily, quickly and efficiently without cost to the client. If a platform lets you down on its service proposition and does not deliver what it says it is going to deliver, we cannot just say, thanks very much and move to another provider. We cannot do anything about it, and at the moment to physically take our clients away from a poor service provider is a complete nightmare.”
Platforum managing director Holly Mackay said: “We are talking about this in the context of the FSA and the retail distribution review but could we not take it out of this context and use this as an example to jump ahead of regulation?”