We saw with surprise Skandia’s decision to move away from re-registration into their funds supermarket in favour of transfers, in the article headlined, Skandia planning to axe re-registration (Money Marketing, October 28). I wonder if advisers share two concerns that we have.
First, since Skandia offers transfers as the only way to consolidate fund holdings, this could place advisers in a difficult position. In proceeding with consolidation via a transfer, the client has no option but to accept the “out of the market” delay. Pricing with transfers is often different to the “round-trip” price of a free re-registration followed by a fund switch. It is more beneficial to have a choice between re-registration and transfer to determine the best means of consolidation based on circumstances.
Second, while re-registration is complex, laborious and expensive for platforms to operate, to withdraw it for such reasons misses the whole point of supermarkets. Fund platforms are an adviser service and must be designed around the needs and priorities of adviser businesses. Some of those requirements will be complex and expensive to meet while others will be more straight-forward. Platform providers who pick and choose according to their short-term business needs rather than supporting their customers’ long-term requirements will lose ground. We can reassure advisers that our own fund supermarket remains committed to re-registration and to supporting their own long-term business development objectives.
Rob FisherMarketing director,FundsNetwork