FCA urged to include 'opt out' for clients on bulk switching

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The Financial Conduct Authority (FCA) is being urged to include an 'opt out' clause for clients when platforms begin switching clients to 'clean' funds en masse.

Aviva UK head of platform proposition Phil Ralli says the regulator should consider allowing platforms to offer an ‘opt out' approach when it comes to share class migration. Platforms currently have until April 2014 to switch new business to a more transparent, unbundled charging structure, and until 2016 to do the same for existing business. The FCA has not yet clarified the exact information process which will be required in order to switch clients to a new charging structure. After a client has been made aware of the changes, permitting an ‘opt out' approach, in cases where the ...

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