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Platforms in clash over re-reg delays

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Vasilieff: Cofunds and Fidelity should be listening to clients and making re-reg as fast as possible

Platforms have clashed over the time it takes to re-register assets amid claims Fidelity FundsNetwork and Cofunds are taking over two months to re-register some holdings.

Novia chief executive Bill Vasilieff says some transfers from the Cofunds platform have been delayed by over a month while a number of transfers from FundsNetwork have been delayed since January.

Vasilieff says: “Cofunds and Fidelity have taken on billions of pounds onto their platform at clients’ request – they should also be listening to requests to re-register off the platform and making this process as fast as possible.”

Nucleus has also had problems re-registering assets from Cofunds and Fidelity.

The two bigger platforms blame the fact there is currently no industry-wide automatic transfer system.

Skandia, FundsNetwork and Cofunds have an automatic transfer system between the three platforms but not all platforms have automatic transfer capability.

A FundsNetwork spokeswoman says: “While regulation forced platforms to offer in-specie re-registration from January 2013, it did not stipulate that it had to be automated, which is why the industry is experiencing a variance in the time it takes to re-register between platforms.”

The FSA confirmed in its consultation paper in November 2010 that re-registration between platforms should be compulsory while the Tax Incentivised Savings Association set up a contract club to aid the process.

A Cofunds spokesman says: “Where we have to adopt a manual process, it is inevitable that it will take significantly longer to process requests.”

Nucleus chief executive David Ferguson says although many transfers currently have to be carried out manually, they should be completed within 21 days.

He says: “The process of manual re-registration has always been messy but most usually complete within two or three weeks.”

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Comments

There are 5 comments at the moment, we would love to hear your opinion too.

  1. Cofunds, Fidelity and Skandia deserve great credit for being first adopters of automated re-registration solutions.

    No doubt transfers between themselves will have speeded up.

    What plans do the detractors have for automating their arcane manual re-reg processes?

  2. Fundsnetwork are quoting 2 months for re-reg onto their platform. They also took nearly 3 weeks to start process.

  3. @Renata

    I don’t know whether you work for a platform or are an adviser, but as far as I am concerned I can echo Bill Vasilieff’s frustrations. My only experience is trying to transfer off the Cofounds platform and I can tell you it is taking an age.

    I’m sure they must be struggling and under pressure, not to mention the uncertainties of the RDR and their recent takeover, but to all intents and purposes it certainly looks and feels as if they are being purposely obtuse. Perhaps that’s unkind, but the process is far from smooth and they seem to put every hurdle possible in the path of an efficient outcome.

    Presumably as they get more experienced things will improve – at least we can hope so. Perhaps if they examined the reasons why people want to move from their platform and successfully address these issues the whole problem will go away in any case. This is probably easier said than done when considering their new owners.

  4. Our last transfer case from FNW started in October and completed in March

  5. The focus of re-registration should be the end client. It is possible to re-register assets manually, but that is time consuming and lays the client’s assets open to risks. It is also costly for the platforms/providers involved.

    Origo’s answer has been to extend the functionality of the industry’s award-winning Options Transfers service, enabling platforms, SIPPs and other providers to carry out automated asset transfers using a plug-and-play system that requires no IT resource from the provider.

    At the same time, Origo has been working with other technology services companies to ensure Options Transfers is interoperable – i.e. that it can enable asset transfers not just between users of Options but with other service providers in the market. As a result the first live transfer of assets between Skandia and Fidelity occurred in February.

    This enables advisers needing to transfer client assets between parties to do so quickly and seamlessly and without encashing those assets along the way.

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