The automatic conversion of client assets into clean share class funds could result in higher costs for investors, according to Axa Elevate.
AXA Elevate managing director David Thompson said the approach places customers at risk of increased costs due to cost differences between retail and clean share classes.
Thompson said the conversion process would be better managed by advisers.
But Thompson said: "Following the publication of platform paper PS13/1, we considered automatically converting assets on Elevate from retail to equivalent clean share classes.
"However, once the FCA clarified its position on the continuation of cash rebates it became clear it was not a regulatory requirement.
"The decision to force conversion appears at odds with the clarification from the regulator that the rebate to clients on legacy assets can continue and it is unclear where the authority for platforms to force this move comes from."
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