FundsNetwork is close to adding an online in specie transfer facility and will have a monthly saving...
FundsNetwork is close to adding an online in specie transfer facility and will have a monthly savings plan in place by the start of next year.
The introduction of an online re-registration facility, another name for in-specie transfer, which is due to take place early next year after systems testing is complete, would give investors and brokers a simpler and quicker route to transferring fund holdings onto the supermarket.
Currently, investors and brokers wanting to move clients' Peps and Isas or fund holdings onto the platform have to sell their holdings and then re-buy them via the supermarket. It is, according to FundsNetwork, a lengthy process that can take up to seven weeks.
The current process means that investors' assets must be taken out of the market for a period so any upswings in the market may be missed. The planned facility will require an application form to be completed and will be available as a download or by telephone on 0800 995511. The addition of in specie transfers would give FundsNetwork a substantial competitive advantage over CoFunds.
Dave Cowdell, associate director, UK wholesale marketing at Fidelity, said the re-registration facility had the potential to substantially increase the funds under management on the platform. Fidelity believes that the lack of a re-registration capacity has stopped advisers from moving clients' historic assets onto the site.
The benefits of doing so are that once there, the mass of reports that a diversified Pep and Isa portfolio can generate can be consolidated so that adviser and client receive one statement only. Switching between funds is also easier on the platform with a 0.25% initial charge.
The monthly savings plan, something that Cofunds already offers, will start with contributions of £50 on any of the 565 funds from 37 product providers which are currently available on the platform.
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