Investments  

Cofunds outlines share class switching process

Cofunds outlines share class switching process

Platform giant Cofunds has said two newly-developed tools will help advisers who use the platform switch clients to unbundled share classes.

Advisers with clients in ‘bundled’ share classes have largely had to start moving them into non-commission-paying share classes as the implementation of the RDR heralded a ban on trail commission paid to advisers.

This has ushered in explicit charging for advice as advisers will no longer be able to take trail commission from fund share classes.

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The platform said to help advisers move clients to a fee-charging model, it had launched the bulk segmentation tool.

Once the adviser and client have agreed a fee-charging model, the platform said its bulk conversion tool would mean they could convert numerous clients’ holdings into their equivalent commission-free share classes.

Andy Coleman, director of distribution at Cofunds, said: “Unlike other platforms, we’ve been working with our clients to ensure they’re equipped to have the initial conversations with their investors themselves on the crucial subject of the move to transparent pricing.

“As a result, to date we’ve seen 60 per cent of assets move into clean share classes. We respect the relationships they have and believe our role is to support them at the current time, ahead of us eventually taking the lead as we approach the final phase of sunset later this year.

“Our new bulk segmentation and bulk conversion tools enable advisers to convert their clients to clean share classes all at once, online, in just a few clicks.”