Hargreaves Lansdown will not be carrying out bulk switches of client money from bundled to clean or super clean share classes, Investment Week can reveal.
Ian Gorham, chief executive of the D2C giant, which has almost £40bn of AUM, said the platform will not follow in the footsteps of some competitors which have opted to convert all clients to clean share classes at once.
Instead, he said clients will need to elect to switch out of bundled and into clean share classes.
"Clients will have the option to convert if they want, but we will not make that decision for them," Gorham said.
"We have not opted to bulk switch because we are an execution-only business, and therefore it is not up to us to make decisions on where clients should be invested."
A number of rivals - including Standard Life - have already stated they will bulk switch clients as the implications of the RDR and the platform paper take effect.
However, Gorham (pictured) said Hargreaves' approach chimes with the stance of the Financial Conduct Authority (FCA), which said recently "if a client is in any way disadvantaged by such a conversion, we would not expect that conversion to take place."
He added the speed with which the conversion process takes place largely rests with asset managers.
"Ultimately, the conversion process depends on fund managers and what their systems can do," he said.
If clients do wish to convert to clean - or preferential - share classes once they are available, Gorham said the switches are likely to happen at a set point every few months.
"Conversions on a quarterly basis could be the outcome," he said.
At present, Hargreaves does not have any clean share classes available on the platform, but Gorham said once its new pricing structure is announced, it will start to add them on.
Gorham reiterated clients will all be charged the same, regardless of whether they are in bundled or unbundled share classes, and said Hargreaves will at most hold two different share classes - the clean share class, priced at the lowest level the platform can secure; and the bundled version.
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