Tisa has agreed a “workable” solution to aid the re-registering off preferential share classes after asset managers refused to compromise on terms.
The organisation has been hosting industry talks on how to tackle re-reg when it comes to preferential deals. Its preferred option was for receiving platforms to be able to temporarily hold share classes available on a rival platform, before converting into the share class they have access to.
But asset managers have refused to allow preferential share classes agreed with selected platforms to be held elsewhere. It means the ceding platform will have to convert to the clean share class before registering to the receiving platform.
International Financial Data Services director David Moffat is the chair of the Tisa wrap and platform policy council.
He says: “Conceivably our solution is creating quite a lot of extra work, but it is the only way. Fund managers were absolutely adamant they do not want a platform that does not have the rights to a preferential share class to be able to hold it even temporarily as part of a transfer mechanism. It is workable but it is probably the least worst solution.”
Last week Money Marketing reported advisers had been hit with delays in trying to re-reg assets away from the Standard Life Investments range.
Philip J Milton & Company managing director Philip Milton says: “Preferential deals lead to bias in some form or another. They also add complexity – it is as if nobody thinks about the poor client at the end of it.”