4 min read 20 Aug 21
From 1 February the FCA are introducing a regulatory change that aims to make transfers easier for platform customers. Platforms must offer clients the choice to transfer units in investment funds that are common to both platforms. Clients must also have the option to convert to discounted units where they’re available on the new platform.
Find out more about what this means for you and your clients.
We’ve recently made some changes to some of our literature, to make them more succinct and to help improve the experience for clients.
Where previously we provided Key Features documents (KFDs) for the platform and the GIA/ISA, the SIPP and the Junior ISA, we’re now replacing them with the following:
These documents can be accessed via the links above and should be used in the relevant discussions with your clients. You’ll also be able to access them, from 1 February, from our website and in the ‘Documents and Forms’ section on the platform.
From 1 February, where it’s relevant, please provide your clients with a copy of the Ascentric Platform Guide and any appropriate wrapper document; the SIPP Key Features, the ISA Factsheet or the Junior ISA Factsheet. This should be along with the Terms and Charges documents and instead of a KFD.
The current KFDs will be removed from circulation from 1 February and we ask that you delete any copies that you have and replace them with the new documents.
To ensure that you and your DFM partners meet 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.
First, log into the front office and go to the client account detail card. On the client card you’ll see ‘Managed under adviser discretion - Yes or No’. This will confirm how the account has been set up. If it’s not been set up correctly, Transaction Reporting, and in the case of discretionary accounts, the 10% depreciation reporting, will be wrong. Transactions in Exchange Traded Instruments cannot be made if the data is incomplete.
The completeness and accuracy of the data we need is your responsibility, as we can only report on what you tell us. If you find that your client hasn’t been set up correctly, please send us an email and a member of our Customer 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, but please remember that the overall responsibility for the accuracy does lie with you.
In accordance with the FCA’s Retirement Outcome Review of 30 July 2019, there’s a new regulatory requirement for SIPP Annual Statements to include costs and charges information. This is similar to the information we already provide in the Annual Summary of Charges and includes fund manager charges as well as Platform charges, Adviser Charges and DFM charges.
We’ll be providing this additional information in all statements produced from 28 February onwards.