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

Proposed changes to effect from 31 July 2020

clock
The FCA wants to make it unnecessary for platform customers to have to sell down their holdings to transfer to the same fund, but different share class
Image:

The FCA wants to make it unnecessary for platform customers to have to sell down their holdings to transfer to the same fund, but different share class

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 regulator 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 FCA 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 fro...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Regulation

Index providers have become “increasingly influential”.

SEC considering treating index providers as investment advisers

No longer 'data providers'

Elliot Gulliver-Needham
clock 17 June 2022 • 1 min read
JB Beckett

JB Beckett: Competition and the future of financial services

Not such a 'British Bang'

JB Beckett
clock 16 June 2022 • 4 min read
MPs said that there will be opportunities to seek regulatory simplification while being mindful of continued compliance with global standards.

MPs warn government against weakening of financial regulation standards

Opportunities for simplification

clock 15 June 2022 • 2 min read
Trustpilot