23rd April 2013

Over 40% of funds on Ascentric already have clean share classes

Over 40% of funds on Ascentric already have clean share classes

• 1,600 funds on Ascentric already have clean share classes
• 240 clean share classes set up in the last week

Independent wrap platform Ascentric today announces that its users already have access to 1,600 funds with clean share classes. The announcement follows the recent HMRC ruling on rebates which heightened adviser demand for access to clean share classes.

Mike Morrow, Sales and Marketing Director at Ascentric commented, “We were already in the middle of a project to add clean share classes to the platform as part of our RDR plans and have simply accelerated the pace of implementation. In the past week we added 240 clean share classes and expect to have clean versions of all funds, where available, on the platform by September 2013”.

Responding to recent reports regarding the use of ‘superclean’ or cheaper preferential share classes, Morrow added, “We simply want a level playing field across the platform market. Any deviation from this will create a multiple share class issue leading to re-registration chaos, client confusion and additional costs for everyone concerned. We should instead be concentrating on ways to generate conversions from old retail to new clean share classes in bulk.

“We recognise that asset managers may want to offer enhanced terms to the biggest platforms, this should be done using the de-minimis limits that we expect to see endorsed in the upcoming platform paper rather than creating additional bespoke share classes.

“With competition for customers increasing, the last thing advisers need is a difficult conversation with a client explaining why a transfer or conversion has taken so long to complete. Common sense needs to prevail.”

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