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Skandia looks to charge platforms for manual re-reg

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Peter Mann

Skandia is considering charging platforms that do not have an automatic re-registration solution in place.

The firm says where platforms can only carry out manual transfers, it could look to apply a charge per transfer for the work required.

Skandia UK managing director Peter Mann says: “Charging other providers for the inconvenience and delay they are causing to advisers and their clients is something we are now considering.”

Skandia last month hired 40 extra staff to speed up re-registration processes.

Money Marketing study in April revealed nine advised platforms are yet to have an automatic re-registration message vendor in place, accounting for around 20 per cent of the assets on UK adviser platforms.

These include Axa Elevate, Aegon, Aviva, James Hay, Zurich, Seven Investment Management, Raymond James Investment Services and Alliance Trust. Standard Life plans to use Altus as a vendor although this is not yet live.

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Thompson: Not sure it is helpful for any platform to be putting barriers in the way

Elevate managing director David Thompson says: “It is important that advisers and their clients are able to move assets easily to create a competitive market. I am not sure it is helpful for any platform to be putting barriers in the way of this re-registration process.”

Seven Investment Management director Justin Urquhart Stewart says: “Everyone is moving towards automatic re-registration and although some are at different stages this is not the time to create more difficulties for platforms.:

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Ferguson: This seems like a step backwards

Nucleus chief executive David Ferguson says: “Given there should be no barriers at all to re-registration this seems like a step backwards. I also think the amount it would cost Skandia to put this in place would be greater than the amount it would recover.”

The Lang Cat principal Mark Polson says: “I think Skandia would be better placed to address some of its own internal issues.”

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Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. Mr. Mann, you are so old school it’s scary! Barriers to exit and an opportunity to cream a little more from the end user. Get your own house in order because SIS is currently a mess.

  2. Charlie Musson (Skandia) 29th May 2013 at 10:32 am

    Platforms that are not yet providing timely and efficient re-reg are creating barriers to re-reg. Our preference is not to charge and for all platforms to implement the technology to administer electronic re-registration as soon as possible. The more pressure there is in the industry for all providers to move to automated re-reg the better the outcomes will be for advisers and customers.

  3. @Anon 10.02. If you think SIS is a mess you have probably not yet experienced Cofunds.
    I have been waiting since February for re-reg from Cofunds to Skandia and it is still not complete. There are several others in the pipeline – none of which are complete. Much of the mess is created by different share classes for the same fund, but even when they are synchronous it seems that Cofunds are dragging their heels and appear to act more like a Civil Service department that a commercial enterprise.
    If my impressions are correct you can’t really blame Skandia for levying a charge. The amount of time taken to sort all this is considerable. The whole system is a very long way from efficient or ideal and in fact reflects poorly on the whole platform concept

  4. So haw does this work in reallity. The client and their adviser want to move to a new platform and instruct the new platform to being the process of transfer. The new platform provides all the correct paperwork signed by the client to Skandia. Skandia try to extort money from the new platform for requesting the legal transfer of the assets on a paper from. New platform refuses to pay Skandia’s demand (and no doubt tells them to stick their demand where the sun don’t shine) – so what happens now? Do Skandia refuse to transfer the assets even though it is a FCA requirement that assets must be able to freely transfer out?

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