View more on these topics

71% of advisers breaching TCF on wrap migration

More than two thirds of advisers could be in breach of TCF as a result of the way they transfer clients onto a wrap platform, new research suggests.

Pensions software provider Dunstan Thomas says advisers could fall foul of the regulator by migrating specific groups of clients onto a wrap rather than advising them all on its pros and cons.

According to its research, around half (52 per cent) of clients are actively revisiting selected clients to assess whether to move them into a platform.

Only 19 per cent are revisiting all their clients to assess whether to move them onto a platform, while just four per cent are actively moving all clients together.

Dunstan Thomas chairman Chris Read says: “More than two thirds of adviser firms (71 per cent) may be in breach of TCF by selecting specific groups of customers for migration to wrap rather than explaining the pros and cons of wrap to all customers and helping them to make the right decision for them.”

Research by Dunstan Thomas also reveals just one in ten product providers believe wrap platforms are their key route to growth this year.

In a poll of 183 life offices, Sipp providers and administrators, the firm discovered that a third (35 per cent) have adopted a “wait and see” approach on entering the wrap market, while just 6 per cent have bought a stake in a key wrap platform.

Around one in five (18 per cent) are building their own wrap platforms.

The research also found a fifth intend to take advantage of the turbulent market to acquire or partner. However just 16 per cent of providers are looking to develop new products this year.

Recommended

Smart thinking

Two strands of industry comment have drawn my interest in the last few weeks. They involve the re-emergence of broker funds and the question of whether platform users can justify higher charges.

FSA forms internal Northern Rock team

The FSA has formed a team of nine internal staff to implement its recommendations for Northern Rock, following the regulator’s investigations last month.The team, lead by head of supervision for small mortgage firms and credit unions Mandy Spink, will have a month to develop detailed plans for the bank and a year to implement them.During […]

Bank of Ireland to withdraw range today

Bank of Ireland has announced it will be withdrawing its existing range of products at 5pm today.It says that this in order to preserve service levels.In an email to brokers it says that fully completed applications will be accepted until 5pm. It warns that online AIPs do not reserve funds, only full online applications.It says […]

New Star hires fund manager trio

New Star has appointed three new fund managers in a bid to boost performance across some of the funds in its range.Ex-Barings UK income specialist Charles Deptford and Allianz RCM fund manager Trevor Green will both join the UK desk to help Toby Thompson and Steven Whittaker on their respective UK vehicles.Meanwhile, BDT fund manager […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com