FSA avoids setting specific re-reg timescale
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The FSA has decided not to set the “reasonable time” period in which re-registration should take place, despite industry feedback which puts maximum registration periods from a few working days to six months.
The regulator published its policy statement on platforms this morning. The FSA has delayed a decision to ban cash rebates and payments between platforms and providers until more research is carried out on the implications of such bans.
Many respondents to the FSA’s platform consultation published in November suggested maximum re-reg periods ranging from a few working days to several weeks.
But other firms suggested that three to six months should be considered as reasonable.
The Tax Incentivised Savings Association published an industry re-reg service level agreement in January.
The FSA says it will consider further rules if fund managers or other parties are shown to cause unnecessary delays to the re-reg process, or if firms are quick to re-reg assets but mistakes are made in the process.
The FSA says: “Given the Tisa initiative, which we support, we do not think it is appropriate to set prescriptive rules regarding the timescales for re-registration at this stage.
“We will use the results of our post-implementation review work to assess the industry’s progress and to determine whether prescriptive rules are needed.”
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