PlatformMay 4 2017

No investor respite on platform re-registration fees

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No investor respite on platform re-registration fees

High re-registration charges are still putting advisers and clients off from transferring money between platforms, a platform chief has warned.

Bill Vasilieff, chief executive of Novia, said although the ability to re-register between platforms has been mandatory since 2012, he was still hearing advisers complain that some platforms have been charging.

He commented: "Although the ability to re-register has been mandatory, some platforms blocked re-registering out.

"We believe there should be no barriers to clients accessing their own money, although we are aware of platforms that still do charge."

It is an irritation for advisers that some fund managers and platforms are effectively still trying to block clients from transferring their own money. Bill Vasilieff

Clive Waller, founder of CWC Research, said one of the biggest barriers to re-registration - essentially moving clients from one platform to another - was the expense, especially where platforms did not have cost-efficient processes in place. 

He commented: "The cost of moving a client from one platform to another is typically £500 - £1,200.

"In the majority of cases, advisers avoid doing it. I suspect it needs legislation or very strong regulation to drive speedy, easy re-registration. It is a huge disincentive to platform mergers."

Mr Vasilieff added: "It is an irritation for advisers that some fund managers and platforms are effectively still trying to block clients from transferring their own money."

Novia does not charge to re-register, either on or off platform, and neither does wrap platform Transact.

Sam Anderson, marketing manager for Transact, said: "Platforms have a view of their own business, so each takes its own approach to charges. 

"Our charging structure is transparent. We do not add additional administration charges for re-registrations, transfers (in or out), drawdown or income payments, to move assets between wrappers nor charge for probate or ad-hoc valuations."

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