Fidelity’s platform business FundsNetwork has cited the findings of an adviser survey and claimed support for its stance on bulk conversions to clean fee share classes for intermediary clients, despite a majority saying their platform was not offering enough support.
Jon Everill, head of advisory services at FundsNetwork, claimed “the majority of advisers feel supported by the platform or platforms that they use”, following a survey of 204 advisers carried out jointly by Fidelity Worldwide Investment and FundsNetwork.
He added that there was a strong desire for bulk conversions to clean share classes as the deadline for legacy business approaches in April 2016, but that in the short-term advisers wanted to remain “in control of moving clients”.
In actual fact, only 48 per cent of advisers said they were ‘confident’ platforms are doing enough to help move from bundled to clean share classes in April 2014, leaving more than half that stated they are not sure they are getting enough support.
Ahead of the absolute deadline for legacy business in 2016, a smaller proportion (44 per cent) said they want platforms to help them transfer from bundled to clean shares by bulk converting their clients automatically.
Mr Everill said: “It is... reassuring that the majority of advisers feel supported by the platform or platforms that they use, but it is clear the conversion of bundled to clean share classes represents one of the biggest tasks advisers face over the next few years.
“The survey suggests that advisers would favour being in control of moving clients in the short-term but would appreciate their platform helping them to bulk convert the remainder closer to the deadline.”
FCA rules finalised last year mean cash rebates will be banned on new business from April of this year, with a further two-year grace period before all legacy business must be converted.
A number of platforms have bulk converted clients ahead of the 2014 deadline, including Standard Life which completed the conversion of most clients in the last week of 2013.
David Tiller, head of platform propositions at the firm, previously told FTAdviser: “One group of platforms have built or are building unit rebating, rebate tax collection and reporting functionality and require advisers to self-manage the conversion to clean funds.
“Platforms that have built unit rebating and tax collection will waste this sunk cost if they convert to clean. But the reality is current behaviours are being driven by past decisions.”
FundsNetwork told FTAdviser sister title Investment Adviser in September last year that despite having campaigned in favour of bulk converting, it had “no plans to switch off trail commission” and that it would not be bulk converting clients in the near term.
A spokesperson for the platform said at the time it had already seen a significant number of advisers move to clean fee share classes that it expected “the majority of assets to have been converted” by 2016.
