GC13/7 Changing customers to post-RDR unit classes

This proposed guidance relates to the following rules in the FCA Handbooks

  • Collective Investment Schemes sourcebook (COLL) 6.4.8R
  • Conduct of Business sourcebook (COBS) 2.1.1R (1), 6E.1 and 14.2.1R(7)
  • The definition of ‘unitholder’ within the Glossary of definitions in the FCA Handbook

The full guidance: GC13/7 Changing customers to post-RDR unit classes

This guidance is likely to be of most relevance to platforms and nominees, product providers and financial advisers.

Background to this consultation

This guidance sets out the FCA’s expectations of firms which are involved in the transfer of investors from pre-RDR unit classes to post-RDR unit classes.

We are setting out our approach following queries from stakeholders and some evidence of uncertainty about how to convert investors to the new unit classes.

Summary of the key issues

This Guidance addresses:

  • whether a conversion to a clean unit class should be treated in the same way as a switch of units
  • whether conversions can happen in bulk rather than individually
  • if conversions can happen without express consent of the relevant unitholder(s)
  • whether advice is needed
  • the role of advisers in the conversion process, and
  • whether a new disclosure document (e.g. a Key Investor Information Document (KIID) for a UCITS scheme) needs to be issued to each relevant unitholder before conversion  

Cost benefit analysis 

CBA is included in this consultation, see Annex for further details.

We invite your views on

Do you have any comments on the proposed guidance?

Please respond by 23 November 2013 [1 month consultation period]

Please email your responses to

[email protected]

Or send your responses to:

Stefanie Thorns
Asset Management & Funds / Policy, Risk & Research (PRR)
The Financial Conduct Authority
25 The North Colonnade
London E14 5HS
Telephone: 020 7066 1332