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FSA signals re-reg crackdown

The FSA has signalled it is looking to crack down on platforms that do not allow the re-registration of assets.

In a speech yesterday in Luxembourg, FSA director of conduct policy Sheila Nicoll sounded a warning shot to the platform industry to tackle re-registration issues, which she said were causing poor outcomes for consumers and presenting a potential barrier to new entrants.

She said that re-registration has been an issue in the UK for a number of years as many platforms do not allow customers to re-register holdings off their platform.

Nicoll said that where re-registration is not available, customers have to sell and repurchase holdings if they want to move them elsewhere which could cause a tax liability.

Nicoll said that as a result of some platforms not allowing re-registration, “customers and their advisers may find it more difficult, or even impractical, to transfer assets to another service provider”.

She said: “Some may even be put off by the hurdles without investigating the practicalities of a transfer.”

She added: “This is a poor outcome, as customers should be able to transfer their assets elsewhere if they are no longer satisfied with the service they receive.

“The lack of re-registration also presents a potential barrier to new entrants to the platform market and we will be discussing the options available to us to correct this poor outcome.”

Nicoll also said the FSA is looking at ways of ensuring that platforms do not become a channel which providers use to continue paying commission to advisers.

She also said the FSA does not want to see platforms offering incentives to move investments unnecessarily between platforms, especially if consumers incur extra charges.


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There are 14 comments at the moment, we would love to hear your opinion too.

  1. Kelman Chambers 26th March 2010 at 10:01 am

    About time! It should be mandatory. Any platform not allowing it should be put out of business until they change their ways.

  2. As usual the FSA are years behind the times but better late than ever. After all clients should be enabled to reregister!

  3. The sooner the ability to reregister is compulsory the better. Without it TCF is just not happening

  4. It makes no comment about how soon the FSA intend to implement changes to allow full re-registration of assets. You can bet that it won’t happen overnight

  5. At last – the FSA are making sense. Cofunds please take note!

  6. Neil F Liversidge 26th March 2010 at 10:22 am

    Credit where it’s due, Nice one Sheila, well done FSA. Hope the outbreak of reality continues apace!

  7. Who currently offers re-registrations with no restrictions?

  8. Great to see the FSA wasting money sending people to luxembourg.

  9. martin broomfield 26th March 2010 at 10:50 am

    Novia offer re-registration on and off our full wrap platform without restriction

  10. Mmmmmm…

    Yes, the FSA are slow to back what the adviser community has been saying all along but I, Captain Cynic, would suggest that they are only saying it now because the culprits are recognising they have to change anyway.

    Maybe the buddy network has authorised Sheila’s comments, maybe not; but the lack of commitment to timetables just smacks of words without substance again.

  11. Good stuff Shiela. Or as Oliver Twist might have said “Please Sir. Can I have some more?” And it would be nice to know When??

  12. More FSA poking its nose in where it’s not needed. Platforms that do not allow re-registration will be shunned by all good advisers. This will rapidly drive them either (a) out of business or (b) to reform. The market will sort it. The FSA should go away – again. It’s just more grandstanding to justify the existence of a failed Quango.

  13. Great to see the FSA wasting money sending people to luxembourg.

  14. To: Steven Farrall | 26 Mar 2010 12:28 pm

    Is it not the FSA’s job to ‘poke its nose in’, after all it is a regulator!

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