View more on these topics

FSA refuses to budge on re-reg advice definition

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.


News and expert analysis straight to your inbox

Sign up


There is one comment at the moment, we would love to hear your opinion too.

  1. Totally illogical as the platform will often have a fee – so extra cost is involved which needs to be justified to the client – most people would call that advice – and, most platforms will not hold a ‘retail’ share class (especially after the FSA ban cash rebates) so will sell to reinvest in a ‘clean share class’.

Leave a comment


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