Cofunds has issued a fresh warning on the impact of moving clients to clean share classes by April 2016, saying the worst case scenario would mean liquidating assets if platforms do not hear back from clients.
Following the rebates ban, Cofunds plans to move to clean share classes before the FCA’s April 2016 deadline.
In its spring/summer adviser magazine Perspectives, the platform says it is “inevitable” some clients will not respond to requests to move to clean share classes. It adds it is continuing to lobby the FCA for a solution.
In the article, head of proposition Sam Christopher says: “The worst outcome will be that platforms have to liquidate the assets of non-responsive investors, potentially losing valuable tax wrappers and creating tax liabilities.”
Cofunds has no specific plans to deal with clients that have not converted before April 2016. The platform is concerned its terms do not allow it to move clients in bulk.
Derbyshire Booth managing director Greg Heath says: “The added difficulty is Cofunds will not know who is unresponsive right up until the deadline. It is important to get the FCA involved now.”