Platforms are setting out their stall on whether they will help advisers with the Mifid II requirement to tell customers when their portfolios drop by more than 10 per cent.
Under Mifid II, which will come into force on 3 January 2018, clients invested in a discretionary portfolio must be informed when the overall value of their portfolio has dropped by 10 per cent, and then by further multiples of 10. The notification must take place within 24 hours.
Under the regulation, the responsibility to notify sits with the discretionary fund manager, but advisers will need to be aware what has been agreed in the contracts they have with DFMs.
Platforms, including AJ Bell, Transact and Standard Life say they will help DFMs and advisers with reporting a 10 per cent drop. Platforms are in a good place to help with that reporting because they should hold the necessary data.
Standard Life adviser and wealth manager propositions head David Tiller says the Standard Life platform is built to supply the data in the event of a 10 per cent drop.
Transact chief executive Ian Taylor adds: “Given we have custody of the assets, it is easier for us to do it than anyone else. It is not necessarily the platform’s responsibility but, in many instances, the platform is the only realistic place the work can be done.”
However, Money Marketing understands some platforms will not help with reporting. There are suggestions that Fidelity-owned Fundsnetwork is one of the platforms that may not help with that requirement.
A Fundsnetwork spokesman says the firm is still deciding on its position.
The spokesman says: “We are currently working with advisory firms and our DFM partners on how best we can support them in meeting their regulatory implications under Mifid II. The details of the technical solution are currently being finalised.”
Money Marketing previously reported that platforms are also clarifying their stance around which “non-individual” clients will need a legal entity identifier to make certain trades under Mifid II.
Some platforms, including Novia, are requesting that all relevant clients should get an LEI now, even if they do not need one immediately because they might want to make those trades in the future.