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Ascentric ready for RDR

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Independent wrap platform Ascentric says the provision of transparency to advisers and clients, as required by RDR, has always been a central feature of its proposition and it will continue to be so.



Ascentric believes the impact of RDR on the platform has been relatively limited with changes mainly impacting documentation, platform screens and outputs.
 
Last week, Ascentric wrote to all its advisers giving an overview of these changes and the impact this will have on them and their clients. It has also set out a timetable for further communication and implementation so they know when changes are going to take place and what action is needed.
 
From 2013, Ascentric will operate exclusively on the basis of adviser charging. This move will simplify the way charging is applied on the platform and avoids the significant practical challenges, both for the platform and the adviser, in supporting client investments that are subject to both commission and adviser charges with the complexities of aggregated dealing. The impact on Ascentric users is limited with very few currently charging on a commission basis.
 
Client authority will be required for all adviser charges including where changes are required to an existing charge set up. Platform and product charges will be clearly distinguished from adviser charges and Ascentric will ensure clients can easily view any charges deducted from their accounts.
 
Ascentric will not be applying any maximum limits on adviser charges leaving advisers to determine a charge with clients that reasonably and fairly reflect the services they provide.
 
Mike Morrow (pictured), Ascentric’s sales and marketing director, says: “Our main priority has been to conform to the RDR requirements while limiting where possible the impact of any change on our advisers and their clients. Where action is required by advisers, we will provide any relevant data and forms to make the process as simple as possible.
 
“The reality is that RDR has not had a significant impact on the business with efforts predominantly focused on strengthening our core processes and, where necessary, introducing functionality to ensure compliance with pre-validation.
 
“RDR did, however, require us to make a decision on how we wanted to facilitate the payment of adviser charges. We have always offered adviser charging through the platform but have also given users the option of taking trail commission from the fund manager. This will no longer be an option for new business post RDR and we will operate the platform exclusively on the basis of adviser charging, applicable both to all new business and existing accounts.”

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