Skandia will give advisers until 2016 to convert ISA and collective investment account business on the platform into the unbundled model.
The platform has confirmed that advisers will have the duration of the sunset clause period between April 2014 and April 2016 to transition client holdings into its unbundled, fee based charging structure and has ruled out bulk conversions of assets.
Skandia has additionally reassured advisers trail commission for pension and bond investors in its bundled platform pricing model can continue on undisturbed assets beyond 2016, since the accounts are administered by a life company and fall outside of the Financial Conduct Authority (FCA) platform rules relating to fund manager payments.
The FCA has ruled that legacy payments from fund managers to platforms will be banned from April 2016 and that cash rebates on new business will no longer be allowed from April 2014.
The regulator's latest quarterly consultation paper outlined a number of scenarios where cash rebates on legacy business will be allowed to continue, however.
A number of platform providers, including Standard Life and Novia, will begin to move to an entirely transparent charging model ahead of the deadline through bulk conversions of retail share classes into clean share classes.
Skandia joins Axa Elevate in voicing concerns over the potential implications for investors who are subject to automatic asset conversions and has announced it will instead leave the process in the hands of advisers.
Skandia UK managing director Peter Mann (pictured) said: "The confirmation of our position gives advisers certainty more than two years ahead of the April 2016 deadline set by the FCA. Our aim has always been to find the optimal solution for advisers and their clients in light of the regulatory landscape and I believe we have done that.
"We anticipate that a very small percentage of our ISA and CIA business will be left in our bundled charging structure by 2016. That date is over two years away and it has never been our intention to expedite the movement of that book to an unbundled model before advisers are ready to do so.
"Importantly, our unbundled charging structure is already compliant with both the RDR rules and the new platform rules coming into effect in April 2014. Any business placed there today will not need to change in 2014 or 2016. In addition, we are now confirming that pension or bond business currently held in our bundled pricing structure will only need to move to our unbundled structure if advisers agree a natural disturbance event with their clients."
Skandia says approximately 50% of assets are operating under adviser charging, while a recent survey revealed two-thirds of advisers said they intend to move all their clients to an adviser charging model within the next 12 months.
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