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Insufficient number of platforms capable of meeting industry re-reg standards, says Skandia

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The vast majority of platforms are still unable to process electronic re-registration of assets, meaning the market is unable to meet the service standards agreed by the industry, according to Skandia. 

The large fund supermarkets are leading the industry on electronic re-registration but advisers are being let down by other platforms who are not able to process re-registrations electronically leading to long delays for advisers and their customers.
 
Re-registration between platforms in a “timely manner” has been mandatory since the implementation of the Retail Distribution Review on 31st December 2012. The definition of timely agreed by all key industry parties involved, under the auspices of the Tax Incentivized Savings Association (TISA), is within five to 11 days, depending on case complexity. The industry has also jointly selected the technology to be used for electronic messaging, the process, and the legal structure.
 
Skandia has connected to the re-registration systems of FundsNetwork, Cofunds and HSBC and re-registrations between these firms are now being conducted electronically. 
 
However the majority of other platforms and fund managers have yet to implement the required technology and, as a consequence, the manual re-registration of funds can still take many weeks. 
 
As a result, processing times across the industry for the manual re-registration process are falling short of what is required.  This is being compounded at Skandia by unprecedented demand for re-registrations which is four times higher than last year on a weekly average.  Two thirds of these re-registration requests are on to the Skandia platform, with one third leaving the platform.  
 
Peter Mann, UK managing director at Skandia, says: “It is ironic that the large fund supermarkets, who have been heavily criticised by the wraps for not facilitating re-reg over the past few years, are now leading the way with electronic re-registration whilst the wraps are still forcing advisers into a manual process which is leading to delays. If all platforms had built the technology to administer electronic re-reg we would all be looking at turnaround times of between five and eleven days, rather than the three or four weeks manual processes are currently taking. These delays are frustrating for everyone at this busy time of year and platforms need to do more to help advisers.
 
“I think there was also a perception that the fund supermarkets would lose out post RDR when re-reg became mandatory so it is interesting to see that we are gaining more business as a result of increased re-reg activity.”

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