Easier platform transfers?

Transferring between investment platforms may finally be getting easier.

Author Photo
Justin Modray
Share:
Blog Image

The Financial Conduct Authority (FCA) has today published a Consultation Paper (CP19/12) proposing to make transferring accounts between investment platforms both simpler and cheaper.

The proposals, if implemented, will be great news for investors. At present it’s all too common for platforms to charge fees when transferring out to another platform. And in some instances, it’s not possible to transfer investments ‘as is’ (called ‘in-specie’).

Having just read the paper, I can’t help but feel that it’s squarely targeted at Hargreaves Lansdown: i.e. large platforms which have potentially high exit fess and special fund versions that can prove difficult to transfer in-specie.

The FCA’s two key proposals are banning all platform exit costs associated with transfers out (which would include in-specie, dealing and account closure fees) and requiring platforms to convert special fund versions to standard ones that can be accepted by other platforms.

I really hope the FCA has the teeth to implement its proposals in full, as it will give investors a fairer deal by removing potential barriers to transferring. Unfortunately, its track record is not great, a previous fund consultation that had the potential to really shake up investment fund charging has made little difference so far.

Receive our regular updates

Enjoy this blog? Receive our regular updates covering a whole host of topics...

I understand and agree to your Privacy Policy.

Can we help?

We expect to save you a lot of money versus comparable services. To arrange an initial 10–15 minute chat call us on 0203 397 7280 or click below.

Call me back
...

6 Riverside Court
Bath
BA2 3DZ

0203 397 7280
hello@candidfinancialadvice.com

Candid Financial Advice Limited is authorised and regulated by the Financial Conduct Authority. FCA number 630986. Registered in England and Wales, company number 8261124, 6 Riverside Court, Bath BA2 3DZ.

Decisions should not be taken based solely on the content of this website, individual advice should be sought first. Regulations, levels and bases of taxation are subject to change. Tax planning is not regulated by the Financial Conduct Authority. We are not responsible for the content of external links. The content on this website is aimed at UK residents.

We record telephone calls for quality and regulatory purposes.

© Candid Financial Advice Limited 2013-2022