The platform industry has welcomed the Tax Incentivised Savings Association’s proposal to set up an industry-wide automatic share class conversion system.
Last week, Tisa announced it is considering setting up a working group to develop the technology, which would see automatic conversion between share classes when re-registering between platforms.
The move comes as Standard Life and Skandia seek preferential share classes from fund groups following HM Revenue & Customs’ decision to tax platform rebates, which could lead to a greater number of share classes in the market.
Currently when re-registering assets between platforms with different share classes, advisers have to either sell down the assets and buy into the new share class units or carry out an individual share conversion which can take up to two weeks.
Tisa technical director Jeffrey Mushens says: “If there is going to be a proliferation of share classes then an automatic share conversion will make re-registration a lot easier.”
Skandia UK managing director Pater Mann says: “This will be difficult to achieve because you have to get everyone in the industry working from the same page but it is definitely something Skandia would support.”
Cofunds chief executive Martin Davis says: “We are fully supportive of any initiative that aids the re-registration process between platforms and are behind this proposal.”
AJ Bell marketing director Billy Mackay says: “Anything which can aid the re-registration process between platforms has to be a good thing and it is something we support.”