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Press comment: Platforms must come together to make transfers more efficient

13/12/2019

If you are covering the FCA paper Making transfers simpler –feedback to CP19/12 and final rules, please find comment from Steven Levin, CEO of Quilter’s platform, Old Mutual Wealth:

Steven Levin“Switching platforms should be simple and straightforward for customers and the FCA acknowledges that platforms are already collaborating to find efficient processes that work in customers’ best interests through initiatives like STAR.

“We are pleased that the regulator sees merit in the proposed ‘in-flight’ fund share class conversions, which effectively means conducting the in specie transfer and the share class conversion simultaneously. We believe that would be the most efficient solution across the industry and would remove the need for platforms to hold multiple share classes purely for re-registration.

The platform sector now must come together to explore this option in detail.”

Background

Many platforms negotiate favourable terms with fund managers, benefitting customers that can access cheaper share classes on certain platforms as a result.

However, where customers move platforms this can present challenges in the re-registration process. In order for a customer’s investment to be moved ‘in-specie’ (meaning the customer stays invested without the need for a cash transfer) both the ceding and receiving platform must hold the same share class. Where this is not the case, a conversion is required at some point in the transfer process to move the holding into a share class held on the receiving platform.

Quilter recommends that fund managers instead conduct the conversion ‘in-flight’ between the two platforms.  This is an alternative to either the receiving or ceding platform requesting a conversion before or after the re-registration and would avoid the need for all platforms to hold many different share class variants of the same fund.

For more information contact

Tim Skelton-Smith02380 916 99807824 145 076tim.skelton-smith@quilter.com

Notes to Editors:

About Quilter plc:

Quilter plc is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

Quilter plc oversees £109.8 billion in customer investments (as at 30 September 2019, excluding Heritage life assurance).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset investment solutions; and discretionary fund management.

The business is comprised of two segments: Advice and Wealth Management and Wealth Platforms.

Advice and Wealth Management encompasses the financial advice business, Quilter Financial Planning; the discretionary fund management business, Quilter Cheviot; and Quilter Investors, the Multi-asset investment solutions business.

Wealth Platforms includes Old Mutual Wealth UK platform and Old Mutual International, including AAM Advisory in Singapore.

The Old Mutual Wealth Heritage life assurance business was acquired by ReAssure Group Plc on 2 January 2020.

Since its IPO in June 2018, Quilter plc’s businesses have progressively rebranded to Quilter, as follows: 

  • Quilter Financial Planning (previously Intrinsic)
  • Quilter Private Client Advisers (previously Old Mutual Wealth Private Client Advisers)
  • Charles Derby Group (becoming Quilter Financial Advisers)
  • Quilter Financial Adviser School
  • Quilter Cheviot
  • Quilter Investors
  • Old Mutual Wealth (becoming Quilter Wealth Solutions in 2020)
  • Old Mutual International (becoming Quilter International in 2020)

This press release is for journalists only and should not be relied upon by financial advisers or customers.

Please remember that past performance is not a guide to future performance. The value of investments and the income from them can go down as well as up and investors may not get back any of the amount originally invested. Exchange rate changes may cause the value of overseas investments to rise or fall.

This communication is issued by Quilter plc.  Registered office: Millennium Bridge House, 2 Lambeth Hill, London EC4V 4AJ, United Kingdom. Registered number: 6404270.  Registered in England.