Novia prepares for re-registration rush
Bill Vasilieff, chief executive of wrap provider Novia, said he had spoken to a significant number of advisory firms in recent months who were considering moving their client's assets in the run up to the Retail Distribution Review requirements deadline.
In the 73-page policy paper, the Financial Services Authority (FSA) stated if fund managers or other parties cause delays to in-specie re-registrations, then they could be hit with more rules regulating their behaviour.
The watchdog revealed it had high hopes the Tax Incentivised Savings Association (Tisa) initiative to set service level agreements and to automate the re-registration process should result in it not having to dictate to firms how they should handle transfers.
Mr Vasilieff said he expected the industry would not need hard and fast rules from the FSA about re-registration and would follow Tisa's guidelines.
As a result he said his platform, which has about £900m on it, was preparing itself for re-registrations and he has recently increased the salesforce from six to 10 people bringing the wrap's total workforce to 120.
The FSA stated: "Given the Tisa initiative, which we support, we do not think it is appropriate for us to set prescriptive rules regarding timescales for re-registration at this stage.
"We will use the results of our post-implementation review work to assess the industry's progress and to determine whether prescriptive rules are needed.
"If our post-implementation review work suggests that fund managers or other parties are causing unnecessary delays, or that timeliness is being achieved at the price of accuracy, we will consider further rules at that stage.
"We may also consider widening the scope of the requirement to cover other investments in the future."