Platform provider Cofunds is waiving some of its platform charge on any unbundled transaction within a self-invested personal pension wrapper for up to six months, as it strives to update its systems to ensure compliance with Retail Distribution Review rules.
An adviser who wished to remain unnamed told FTAdviser the platform provider has suspended platform charges on all unbundled Sipp business due to an “internal issue”, saying this would likely continue for another six months.
The adviser emphasised that this is more likely a symptom of RDR than indicative of any particular failing on Cofunds’ part.
A statement from Cofunds, which was recently bought out by long-time minority shareholder Legal and General, confirmed that certain platform charges are not being taken until its system is upgraded later this year.
The company confirmed that the system currently only allows for investment-based charges to be taken from the client’s main platform cash account, rather than the pension trading account that sits within the product wrapper.
The statement said: “We’re in the process of enhancing our systems so that for clients with pension products on the platform, the investment-based platform charge can be taken from their pension trading account within the product wrapper rather than the Cofunds cash account.
“We’re waiving the investment-based element of the platform charge until that’s in place later this year.”
The adviser said: “You can’t blame Cofunds because they are no worse than anyone else. Everybody is getting their problems.
“We have two extra people working our business who are on RDR. I can’t believe people are being so positive about it.”
“They [Cofunds] are better than most at admitting it and trying to sort it. It’s definitely a symptom of RDR.”
Last month (14 March), Cofunds director of marketing Verona Smith told FTAdviser advisers are often not receiving their fees for advice on on-platform investments because they fail to define where funds will come from when clients do not have enough money in their cash accounts.
