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Advisers struggle to re-reg from Standard Life Investments

Advisers attempting to re-register clients away from Standard Life Investments range have been hit with delays as rival platforms cannot support the preferential share class.

Standard Life launched funds with preferential shares classes last month. 

For advisers looking to re-reg from SLI products, Standard has temporarily decided to convert the assets to standard retail classes on its own platform before re-registering to the new platform.

But Tisa technical director Jeffrey Mushens says ceding platforms should be able to re-reg to the acquiring platform, with the new platform then converting assets to an appropriate share class.

He says: “Fund mangers will have to consent to another platform temporarily holding a share class which was agreed with another platform. The platforms do not want to have to hold data on all the share classes for all funds. Where one platform has preferential terms, all the others will have to be able to support that share class temporarily to make re-reg work.”

Tisa is developing a best practice document on how re-reg should interact with preferential share classes.

A Standard Life spokeswoman says: “We are currently working on the full implementation and automation of this process.

“In the short interim period we are happy to discuss the options for advisers and clients wishing to move assets urgently to another platform.”

Clear IFA director Howard Bullock says: “Platforms want preferential deals, but the have the problem of building the mechanics to support the system. Meanwhile it will become increasingly difficult for advisers to articulate all this to clients.”

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Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. This is really getting on my Bips!

    Having to send out Kidds documents to clients who are on platforms… it all makes for quite involved discussions when it comes to who gets what.

    Hmm which share class… retail institutional income accumulation, Standard Life’s special deal…??

    “Sigh” all in a days work educating clients.

    We have moved into the post RDR transparent world…haven’t we??

  2. @JOAT….what RDR transparent world do you think we are in? Look at Hargreaves, one of the largest platforms available and not a single RDR fund available. I think the FCA must have fallen into a deep sleep. Cofunds dont offer any NON RDR funds, and Fidelity FNW offer both RDR and non RDR funds.

    As far as Standard are concerned, if you use their wrap, they have their own share FNZ classes altogether and it took me over 6 months to move ONE client off their wrap.

    It is quite frankly a disgrace that we are a year into RDR and shares classes (costs, prices, kick backs TERs) are more confusing that they were before.

    It is almost impossible to know what one fund on one platform costs compared to the same fund on another platform.

    It’s much more complicated now. How are clients ever going to understand.

  3. I forgot to say that Standard LIfe dont expect client to leave their funds which is why they aren’t geared up for it. They’d never had anyone leave their wrap apparently before me.

    All this rubbish about preferential terms means that the fund manager is being squeezed so much, enabling the platform to take a bigger piece of the cake and the investor ends up where he was pre RDR.

    In general terms you shouldn’t be able to buy a non-RDR fund anymore. Otherwise it defeats one of the objectives of RDR. So, the sooner the FCA explain why many platforms such as Hargreaves are still failing to deliver RDR the better.

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