I was fantastically pleased to hear this week that the UK Platform group has finally agreed to work on a long overdue solution to allow platform to platform to reregistration.
From Q1 2008 advisers and their clients should be more in control of their assets than ever before.
I have always wondered how long ‘the establishment’ of the life industry could continue to resist changes to the process on the grounds of difficulty and process when the only real barrier, as far as I could see, was a lack of commercial will.
While there are of course operational reasons why bulk re-registration is a non-trivial exercise I just cannot understand how providers can refuse to re-register single client holdings while remaining within:
- the law, and
- the boundaries of the FSA's treating customers fairly 'regime'.
The technology companies involved in the re-egistration process have now agreed to use the open trading standard of ISO20022.
These changes are said to be in place ‘by early 2008’ and will allow advisers to switch clients from one platform to another without having to en-cash investments, this will mean that advisers will be able to potentially avoid capital gains tax liabilities and the cost of reinvesting the cash.
In specie transfers from other platforms are currently either impossible (denied!) or a truly tortuous exercise so this shift in the market will be very well received by all at Nucleus.
I also think that Cofunds are sticking to their guns using the ISO20022 standard and is not encouraging any more trotters over the trough!
Here’s hoping the pleas relating to onshore bonds fall on listening ears and that we see similar collaboration on pension transfers!
Congratulations also this week to Hargreaves Lansdown for their excellent full year results.
Revenue is up 38% and the company has seen an increase in underlying profits of 67%. I can only imagine that this magnificent effort will be well received by the markets and will further fuel the shift in market values away from the life and pensions sector into the well run elements of the IFA market.”
David Ferguson is chief executive of Nucleus Financial
The views expressed in this article of those of its author and do not necessarily represent those of IFAonline or any other Incisive Media affiliated organisation.IFAonline
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