Platforms come under fire over share class conversion

clock • 3 min read

Platforms are racing to update their conversion programmes as advisers complain about hefty charges when switching clients into clean share classes.

A number of platforms currently impose a spread between the ‘bid' price and the ‘creation' price of the new clean share class when selling bundled dual-priced funds, despite no transaction of shares taking place. Advisers say this spread means their clients are being left out of pocket. While some platforms have programmes allowing bid-to-bid conversions to take place, others including Fidelity FundsNetwork and Skandia are currently forced to sell and repurchase the funds when an adviser initiates a move themselves. > Read: Just what do gaming and platforms have in common? < This...

To continue reading this article...

Join Professional Adviser

  • Unlimited access to real-time news, industry insights and market intelligence.
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters.
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection.
  • Members-only access to the editor’s weekly Friday commentary
  • 
 Be the first to hear about our events and awards programmes.

Join

 

Already a Professional Adviser member?

Login

More on Wrap/platforms

Will Consumer Duty make platforms 'governance vehicles'?

Will Consumer Duty make platforms 'governance vehicles'?

So, what does the modern platform look like?

Alex Cowan-Sanluis
clock 01 December 2022 • 3 min read
Tough third quarter for platform industry, data shows

Tough third quarter for platform industry, data shows

Economic instability is hurting investor confidence, experts say

Julia Bahr
clock 10 November 2022 • 3 min read
Alex Cowan-Sanluis: The five-stage hierarchy of platform services

Exploring the five-stage hierarchy of platform services

Platform market change sees more consistent tech-driven customer propositions

Alex Cowan-Sanluis
clock 12 October 2022 • 4 min read