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Cofunds alters re-reg stance
by Jun Merrett on Feb 25, 2013 at 18:04
Cofunds has altered its re-registration policy, ditching its previous system of automatically converting fund holdings to be transferred off the platform to clean share classes.
That policy meant that advisers re-registering assets onto platforms that did not support clean share classes were potentially subjected to delays or forced to sell holding before rebuying them on the new platform.
Verona Smith (pictured), marketing director of Cofunds said: 'We've been an active and vocal supporter of re-registration from the outset- a position from which we've never wavered.
'In addition, our position on clean share classes is the one that reflects the spirit of the retail distribution review (RDR) to move to a clean, transparent world for the end investor. In our opinion, anything less than clean is still bundled and not transparent to end-investors. On this point we’re ahead of the market, but we acknowledge this has caused some admin issues where our competitors do not have as broad a range of clean share classes, or continue to support semi-bundled.
'So we’re responding to where the market currently is and will offer greater flexibility than others by allowing re-reg off in the share class the client currently holds or in the new clean share class. This greater flexibility is available with immediate effect and allows advised clients to re-reg their assets with commission included.'
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