FCA proposes 'in specie' transfers and unit class conversions to improve platform switching

Proposed changes to effect from 31 July 2020

Tom Ellis
clock • 5 min read

The regulator has proposed that platforms must offer clients the option of 'in specie' transfers so investors do not have to sell down their holdings to own the same investments after switching to a new provider.

In a consultation paper published alongside the final report of the Financial Conduct Authority's (FCA) platform market study, the FCA said it also wants platforms to take steps to bring about unit class conversions so clients switching platforms are not forced to sell their investment unnecessarily because they are in a different share class of the same fund.  The watchdog said this would mean some platforms would have to make changes to their transfer application materials and would require them to have increased communications with the client and the platform being switched to or from...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Wrap/platforms

Platform innovation: Terry Huddart on Abrdn's Cash Solution

Platform innovation: Terry Huddart on Abrdn's Cash Solution

'I see this as another positive market development'

Terry Huddart
clock 27 February 2025 • 5 min read
LV= expands adviser investment options with Embark partnership

LV= expands adviser investment options with Embark partnership

Builds on adviser support with smoothed managed funds and digital integration

Sahar Nazir
clock 17 February 2025 • 2 min read
Abrdn Adviser makes trio of price reductions on Wrap platform

Abrdn Adviser makes trio of price reductions on Wrap platform

Moving towards a ‘more simplified charging structure’

Isabel Baxter
clock 17 February 2025 • 2 min read