Truestone client director Simon Bullock says the company’s standard settlement period of 14 days is unacceptable, especially given the current market volatility.
Axa IoM bundles trades on its unit-linked “mirror” funds and trades funds within its open architecture range according to the frequency the relevant fund group sets for payment.
The standard settlement period for an instruction to sell a daily traded fund is 14 days as Axa IoM depends on the fund group to pay its proceeds of the sale before crediting the client. Where proceeds from the sale of one or more funds is used to purchase another fund or funds, Axa IoM sells the funds immediately but does not buy the new funds until it has the monies in for the sales.
An Axa IoM spokeswoman says: “If we sold the old funds and bought the new funds at the same time, the client is highly likely to pay for the new funds before receiving money for the old funds.”
Truestone client director Simon Bullock says: “Axa Isle of Man is being entrusted with the client’s monies and client perception would be that it would get them a better service from fund groups than they themselves could get direct but they seem to be getting an inferior service.”