The FSA has confirmed platform re-registration will be classed as a non-advised process post-RDR, therefore allowing legacy commission to continue to be paid, despite concerns from platforms about the unintended consequences of such a move.
In its policy statement on the treatment of legacy assets, published today, the regulator clarified that platform-to-platform re-registration would be classed as non-advised because it would generally not involve buying and selling the investments held on the original platform.
There had been concerns raised previously by industry figures, and in particular Cofunds, that there would be a problem re-registering assets which were part legacy-eligible and part “new world” because the re-registration standards have no way of recognising which part of an investment is eligible for legacy and which is not.
The FSA says: “The guidance we consulted on states that re-registration is unlikely to be advice, because normally it will not involve buying and selling the investments held on the original platform.”
The regulator says providers and platforms should be able to rely on advisers to inform them where there has been advice with firms free to decide for themselves how they will ensure commission is not paid for advice.