New platform news
Advisory or Discretionary Accounts – An important reminder of what you need to do
To ensure that you and your DFM partners meet the regulatory requirements, it’s important that we have the correct information about the Discretionary or Advisory status of your customers’ accounts.
If this information is incorrect it means that transactions will be reported to the FCA incorrectly, along with inaccurate monitoring of accounts for 10% depreciation. It also means that Advisers with discretionary accounts, and DFMs, will be in breach of their regulatory duty.
What you must do
Firstly, log into front office and go to the client account detail card. On the client card it will say ‘Managed under adviser discretion - Yes or No’. This will confirm how the account has been set up. Providing this is correct, we can report correctly. Otherwise, Transaction Reporting, and in the case of Discretionary accounts, the 10% depreciation reporting will be wrong. Transactions in Exchange Traded Instruments (ETIs) cannot be made if the data is incomplete.
We can only report based on what you tell us. The completeness and accuracy of the data we need is your responsibility. If you do find that your client has not been set up correctly then please send an email to firstname.lastname@example.org and a member of our Client Services team will be able to make the correction.
We’ll be carrying out checks to ensure the status of client accounts is correctly flagged and if we believe the information is inaccurate or incomplete we can’t process the business. However, overall responsibility for the accuracy does lie with you.
And finally, even if flagged correctly, the accuracy of the monitoring of Discretionary accounts for 10% depreciations will be affected where there are active or unsettled transactions. This is because the report is trying to hit a moving target, so it’s essential that you consider this before finalising the client report.
For more help and support: Guidance around all of the aspects of the regulation can be referred to in our MiFID II for advisers guide. Alternatively, don’t hesitate tocontact your BDM if you need further help.
Creating commitments for GTRUSTs, GCHARITYs & GCORP wrappers
If you’ve recently tried to create a commitment for a GTRUST, GCHARITY or GCORP on the new platform, you’ll have noticed this generates an error message and won’t allow you to complete the action. This is not a defect, the system won’t allow these to be created this way. Because you’re unable to use the system for these applications, it means you’re not able to create a commitment.
When we receive a new cash transfer, or additional lump sum, for existing accounts we will create the commitment into cash. Then, when the payments have been allocated, you’ll need to manually invest the money if required.
Client Valuation Statements
Your client valuation statements, for quarter four, will be ready to view on the new platform and sent out in the post to those still receiving paper statements in the next couple of weeks. We’ll be sending an email to let you know all the details when they are uploaded and live.
Be “Tax Year End” prepared
Tax Year End is nearly upon us again! We want to make sure we’ve given you as much time and information as possible to get everything done by this year’s deadline. So, between now and 5th April we’ll be setting up a dedicated website page with some useful hints and tips, important deadlines you need to know and we’ll also be contacting you with a few reminders along the way.
Please keep an eye out and we’ll be back in touch very soon.