“It’s very encouraging that the FCA’s Investment Platform Market Study concluded that this important and fast growing market is on the whole working effectively. Aegon supports further work to make the process of transferring between platforms easier and more transparent. We are pleased that the FCA has given the industry the opportunity to develop its own solutions rather than imposing new regulation. We support the activity STAR is undertaking with industry players and encourage everyone involved in the transfer process to join.
“We understand why the FCA wants to make ‘in specie’ transfers more widely available, including where different share classes are available on the ceding and receiving platform. This is particularly important where assets are held outside of pensions or ISA wrappers and cash transfers would generate a capital gains tax liability. Feedback to the consultation highlighted a range of challenges here including the potential for the ceding platform to have to add a new share class on the customer’s request. We are pleased that the FCA supports the development of new technology solutions including ‘in flight conversions’ under which fund managers would carry out the share class conversion and re-registration within a single automated process. We believe this would avoid increasing costs, complexities and timescales for in specie transfers.”
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