Platform re-registration will be classed as a non-advised process after the RDR, meaning legacy commission can continue to be paid.
In its policy statement on the treatment of legacy assets, published this week, the regulator says platform-to-platform re-registration will be classed as non-advised because it will not generally involve buying and selling investments.
It says: “Our consultation states that re-registration is unlikely to be advice fecause normally it will not involve buying and selling the investments which are held on the original platform.”
In January, Cofunds raised concerns that it will be difficult for platforms to re-register assets if the process is classed as non-advised because they will have no way of recognising which part of an investment is eligible for legacy and which is not. It called for the process to be classed as advised and for all legacy commission to cease once assets are re-registered.
Head of proposition Verona Smith says: “We are having discussions with the industry about how best to get round this problem. We had hoped the FSA would support the industry in the re-registration process.”
FSA head of investment policy Peter Smith says: “Our view is that in most such transactions, there will be some regulated advice because part of the point of moving assets is to access additional investments.
“But the key point is that the act of re-registration from a legal perspective does not involve regulated advice. I appreciate why people see it as an odd one but there we are.”