Stemming from the fact not all platform providers have automated re-registration in place, Skandia said in some instances advisers can be prevented from making portfolio changes for up to eight weeks while trying to move client assets from one platform to another.
At the start of the year the regulator said re-registration must be available to prevent assets having to be sold before being re-invested on another platform. Crucially, however, it did not say this process had to be automated.
The FCA’s platform paper has also finally came out, click here for more on its implications for advisers and the platform market.
Slick service
A spokesperson for Skandia said re-registration between the ‘big three’ (Skandia, Cofunds and FundsNetwork) was typically very fast, taking only a number of days, because all three have automated processes in place.
Speed bumps are encountered with re-registration from a smaller platform or wrap, however, if it is unable to handle automated processes.
“Until all other providers, fund managers and third-party administrators have such systems in place, Skandia has no choice but to use a manual process for a large number of transactions and has taken steps to improve the efficiency of this manual process,” the company said.
Approximately 40% of its re-registration volumes are not being handled electronically following the implementation of electronic solutions by a number of main providers.
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Weakest links
The Tax Incentivised Saving Association (TISA) has a list of providers who have signed up to TISA Exchange (TEX), which has automation standards, but companies can be on the list without having automation in place if they are working towards it.
FundsNetwork confirmed it shared Skandia’s frustrations with the re-registration process. A spokesperson said it can take weeks to using the manual method because everything is done using paper by post or via fax.
"Unfortunately, there are still a number of providers that do not have automation in place. While regulation forced platforms to offer in-specie re-registration from January 2013, it did not stipulate it had to be automated, which is why the industry is experiencing a variance in the time it takes to re-register between platforms."
Cofunds, which has announced a number of senior management changes of late, said it was also keen for more providers to adopt the TEX system.
Michael Barrett, platform marketing manager at Skandia, said: “With a lack of automation still prevailing across the industry we have taken interim steps to speed up the onerous manual process. This includes a plan to improve turnaround times.
“The re-registration process is only ever as strong as the weakest link in the chain and as a consequence anyone who cannot support electronic re-registration is letting advisers and their customers down.”
Skandia has taken on 40 additional members of staff in its processing centre to improve end-to-end turnaround times.
