The regulator has proposed that platforms must offer clients the option of 'in specie' transfers so investors do not have to sell down their holdings to own the same investments after switching to a new provider.
In a consultation paper published alongside the final report of the Financial Conduct Authority's (FCA) platform market study, the regulator said it also wants platforms to take steps to bring about unit class conversions so clients switching platforms are not forced to sell their investment unnecessarily because they are in a different share class of the same fund. The FCA said this would mean some platforms would have to make changes to their transfer application materials and would require them to have increased communications with the client and the platform being switched to or fro...
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