FCA launches consultation on converting clients to clean share classes

The Financial Conduct Authority (FCA) has launched a consultation into transferring clients from bundled to clean share classes, setting out what it expects from platforms and advisers.

For platforms or other nominees undertaking the conversion to 'clean' share classes, the regulator said a notification to the client, and the transfer itself, do not represent 'advice' events, though both fall under its client best interests rule. For advisers, the FCA said if a client is investing in a fund as a result of the recommendation of a financial adviser and that relationship still exists, then the adviser may have a role to play in the conversion process. However, advisers should not push for a switch to a clean share class if clients are going to end up worse off in the ne...