Adviser Week: What does FSA novation move mean for wrap?

The Financial Services Authority's decision to allow novation after 2012 has been welcomed but the move may have less of an impact for advisers on wrap.

The move means that client assets will be allowed to be transferred to an acquired firm when one IFA buys the client bank of another.

But the process will be less straightforward for advisers on wrap, who will need to seek client permission before assets can be switched.

Also this week, compulsory membership of a professional body may yet be implemented through the back door, unless some new way can be found to sign off a confirmation of professionalism certificate required by the retail distribution review.

Finally, the drive for re-registration has moved a step closer after fund managers and platforms agreed to fund the salary of a single manager to oversee progress on the issue.