Cofunds will be launching bulk segmentation and bulk conversion tools in the early part of next year to help advisers in the run-up to the ‘sunset clause’.
The ‘sunset clause’ refers to the April 2016 deadline given by the Financial Conduct Authority where platforms will stop retaining rebates from the annual management charge to pay for advisers’ services.
The platform said it has written to over 5,000 intermediaries to tell them how they will support them in the run-up to the ‘sunset clause’.
David Hobbs, the firm’s chief executive, stated that along with a range of materials and tools on its website, Cofunds is adding enhanced market intelligence capabilities and an intuitive online cost-comparison tool later in December.
“A key challenge we know our clients face - and where they would particularly welcome our help - is the bulk segmentation and conversion of large back books.
“Therefore, in early 2015 we’ll be launching bulk segmentation and bulk conversion tools, enabling advisers to quickly and easily segment and convert their clients through a simple online process.”
The platform will support advisers with sunset in this way until the third quarter next year, at which point it will take the communications lead with investors who have not yet been converted to clean share classes, with the aim to have all conversions completed by the end of February 2016.
Cofunds said it believes advisers themselves are best placed to initially take the lead in communications with their clients, stressing the importance that end-investors understand how they will be affected by the transition to fee-based models and associated conversion to clean share classes.
Almost two thirds of Cofunds’ clients existing investments have already moved over to clean share class funds.
Mr Hobbs added: “Throughout next year we’ll continue to work closely with advisers to identify where they’ve not been able to contact clients and, where appropriate, we’ll contact them directly.
“These investors will remain the clients of their advisers, and we’ll ensure the advisers are kept informed throughout the process.”
peter.walker@ft.com
