Re-registration and transfer Q&A

Transcription

1 Re-registration and transfer Q&A For adviser use only Transferring assets from existing platforms and asset managers is a common way to add the assets of new or existing s onto the Nucleus platform. This document describes the processes involved in transfers and documents what you must do as an adviser to complete this process. Transfers and re-registrations of either mutual funds (e.g. unit trusts or OEICS) or other assets such as equities can be from: Fund managers. Stockbrokers. Isa providers. Non-life company pension providers (Sipp providers). Life company pension products. Some of which may sometimes exist on other platforms. What is a transfer? A transfer is the moving of the administration of your s assets from one company where they were previously registered (the ceding company) to another. In a transfer, the underlying assets held by the institution are sold down as cash and the underlying cash is then transferred to Nucleus. This is often the case for Isa and Pension accounts although these can also be transferred in specie (see below). What is a re-registration? A re-registration refers to an in-specie transfer. This process involves the re-registration of s assets to Nucleus without selling them first. Essentially the existing units are transferred from the previous owner to a Nucleus nominee (assuming the same beneficial owner of the assets). Reregistrations are typically used for directly held assets and may also be used for Isa and uninsured pension transfers. Re-registration or cash transfer Receiving Nucleus account Re-registration Cash Isa Y * ceding company may not permit re-registration Y Pension Y Y

2 General Y N (would be new money/top up) Please note that not all ceding companies allow re-registrations out. When completing your reregistration instruction on the platform, if a re-registration is not allowed, this will be flagged on the platform. What charges and are involved with re-registrations and transfers? We recommend you check with ceding companies to confirm whether there are any charges. Costs associated with transfers may mean that cash needs to be available in the account in order to cover the costs and ensure that the transfer can take place. How does the transfer process differ for each Nucleus account? Isas The assets within the Isa wrapper can either be transferred in-specie (re-registered) or can be sold and the cash transferred to Nucleus. Which method you choose may be determined by the existing Isa manager and whether they offer in-specie transfers. In the case of an Isa cash transfer, the cash is transferred to Nucleus and then re-invested in the s chosen funds or units. Isas transferred in cash retain their beneficial tax status, as do those that are transferred in-specie. Transfers of stocks and shares Isas If you have a stocks and shares Isa from the current tax year and would like to transfer into the Nucleus Isa, you must transfer the full amount. This amount will continue to count towards your Isa allowance. If you wish to transfer stocks and shares in an Isa from previous tax years to Nucleus, you do not have to transfer the full amount. This amount will not count towards your Isa allowance for the current tax year. Transfer of cash Isas Nucleus do not offer a cash Isa, however if you transfer your cash Isa in the current tax year you can use this to purchase Assets via the Nucleus wrap. This will continue to count against your Isa allowance for the tax year. If you have previously invested in a cash Isa from previous years, you can transfer some or all of this amount and buy Assets within a Nucleus Isa account. This will not count towards your s total Isa allowance for the year. Pensions Pension transfer refers to the transfer of a pension from the current provider to one of the wrappers on the Nucleus wrap (Pension account or Drawdown account). This can be done by either selling the assets and making a cash payment, or transferring the assets in-specie. Wherever possible for pension transfers, you should complete the ceding company s discharge form, as not all companies will accept our transfer form. 2

3 Block transfers The term block transfer is used to describe the situation where the benefits of two or more members of the same scheme are transferred to a new scheme at the same time in order to protect any previous pension benefits. IFAs need to ensure that where such protection exists e.g. higher tax-free cash or low retirement age, block transfers must be requested to ensure that benefits are not lost. Transfers in drawdown Pensions being transferred to Nucleus where the member is already taking income drawdown, are subject to special rules. This would include cases where tax free cash has been taken but no income, or where only part of the benefits have been designated as an unsecured pension. These are as follows: The designated funds cannot be added to an existing plan. It is not possible to split or partially transfer benefits in drawdown (nor protected rights benefits). The whole amount must be transferred to Nucleus at the same time. Multiple transfers in drawdown cannot be combined. It is however possible, to request a Statutory Review so that the transferred funds are on the same cycle as existing policies. Requesting a review can trigger a reduction in GAD limits so this may not be appropriate in all cases. If a transfers to us who is currently on a 5 year and 120% GAD period the income will be reviewed on the next anniversary date. On any pension transfer, the transferring scheme should be responsible for any expenses of transfer and Nucleus must receive formal confirmation of the correct split and drawdown status from the ceding provider prior to allocation of funds. Without formal confirmation from the ceding provider, Nucleus is unable to action any instructions on the account. General and General (Gross) Account Where equities are currently held with another stockbroker, they can be transferred using the Stocktrade Broker transfer form (0088). Where equities are CREST eligible they can be transferred by completing a Crest transfer form (0090) and they will be placed in a Nucleus nominee name. For unit trusts and Oeics a stock transfer form should be used. One stock transfer form must be completed by IFAs for every line of stock and share certificates (where they exist) need to be provided for all re-registrations. If you are uncertain as to whether the asset you are transferring is CREST eligible, please consult the registrar who will be able to advise whether a Stock or Crest transfer form should be used. Failure to submit the correct form may result in a delay in your re-registration and your papers being returned from the fund manager or stockbroker. What is the appropriate Nominee account for each Nucleus account? When completing your re-registration instruction, the platform will validate your instruction and populate your instruction with the appropriate nominee account. What is the appropriate Nominee name for each Nucleus account? The nominee details for each account are as follows: 3

4 Account Payee Sort code Account no General Nucleus Financial Services Ltd General (Gross) Nucleus Financial Services Ltd Isa Nucleus Financial Services Ltd Pension Nucleus Trustee Company Ltd Offshore bond Nucleus Financial Services Ltd What is the appropriate registered address for the completion of stock transfer forms? Firstly, the re-registration tool on the platform and the new business online process will, in most cases, prepopulate all the required stock transfer forms. The undernoted is for your further information. When re-registering stock that is still in a certified form the address of our stockbroker nominee accounts is: Brewin Nominees Limited (designation NTNL) PO Box 1025 Time Central Gallowgate Newcastle Upon Tyne NE99 1SX When re-registering funds wrapper in an entity of Nucleus Financial (e.g. General account) the registered address would be: One London Wall London EC2Y 5AB For Nucleus Trustee Company Ltd the registered address would be: 22 Thistle Street Lane NW Edinburgh EH2 1EA Please note that although the registered address for Nucleus Nominee Accounts is as above, the correspondence address for Nucleus remains Nucleus Client Relations, PO Box 26968, Glasgow, G2 9DY. Sending instructions to the address above will cause a delay in processing your instructions. If the fund is an Allfunds traded fund then irrespective of the wrapper it could be either of the following depending if it were an Onshore or Offshore Fund: Allfunds Bank 4th Floor 40 New Street London Allfunds Bank C/Nuria 57 Madrid Spain 4

5 W1S 2RX Please consult the Transferee details document (number 0089) on the platform library for further information on the correct address for each fund. What paperwork and forms are required for each transfer? Please note: numbers refer to the relevant Nucleus forms to be completed. These documents are available in the platform library. You will need the following data to complete the relevant form in respect of each transfer: Plan or policy number associated with the transfer or re-registration. Full name and address of the ceding company. Details of holdings to be transferred or re-registered and an estimate of value. Full fund name e.g. Inc or Acc. AML forms where required. In addition, to complete re-registration documentation, it is imperative to record for each underlying asset the: Nominee of the company to which the units are to be transferred. This information is automatically populated through the re-registration application on the platform. Number of units to be re-registered of that asset. Transfers either as part of a application or top-up Form required General Isa Pension PR Pension Onshore Offshore /General (Gross) Transfer form per ceding company/plan N/A N/A N/A Ceding company discharge form N/A N/A Yes as per provider Yes as per provider N/A N/A Note: where the ceding company discharge form is available it should be used, otherwise the 0022 transfer form. Re-registration either as part of application or top up Form required General Isa Pension PR Pension Onshore Offshore /General (Gross) Re -registration request per ceding company/plan N/A N/A 5

6 Stock transfer form 0050 N/A N/A (funds) required from 0091 for Stocktrade stock transfers Crest (equities) 0090 Or 0088 where re-reg is required stockbroker to from stockbroker Share certificates Where assets are directly owned How long will it take to transfer assets onto the Nucleus platform The process for a transfer depends on whether the assets are wrapped in an Isa or pension (from a ceding company), or whether they will be transferred into the General account. The time taken can vary widely depending on the differences in processes and administration in various ceding companies. Transfers from ceding companies can take 45 business days to complete Transfers from fund managers can take 25 business days to complete Whilst fund managers operate on a 30 business days time period some transfers, especially those from other platforms can take much longer. Keeping you and your s updated You can check the status of your transfer and re-registration through the Nucleus Platform in the following ways: When documents are sent to the ceding company they will appear in view correspondence. If you are checking the status of your transfer please go to the reports section of the platform and download the in transit assets report which provides the status of all transfers and re-registrations for s associated with the login used. When funds/units are received from the ceding company they will appear in the s transaction history as in specie transfer in or plan transfer in. On completion of a transfer and re-registration, accounts are updated. Transfer completion issues Please note delays to transfer and re-registrations may occur for the following reasons: Inaccuracies on transfer or re-registration instruction when filling in forms - please ensure that the information provided is complete and accurate. 6

7 Problems in designating accounts in particular please check that you have the correct Nominee account as set out in this document. Individual demands of the ceding company Ceding companies will operate different SLAs for their speed of transfer. Improving the transfer and re-registration experience IFAs can help keep the transfer time to a minimum by ensuring that the exact fund names and details quoted on the stock transfer and re-registration forms are complete and accurate. Please ensure that you have included all the required information and forms as incomplete transfer requests can lead to ceding companies rejecting the transfer and returning it to Nucleus. Please note that Nucleus will not action any transfers/re-registrations received based on IFA confirmation only, Nucleus are required to wait for confirmation from the ceding provider before applying funds. Transfers out of Nucleus Nucleus is able to transfer out any assets held on the platform to any other provider. Isa, Pension and assets held in the General account may be re-registered in-specie off the platform, or as cash. Other assets may be transferred off the platform in cash. There are no charges for transfers out, except in the instance of transfers of assets held with our Stockbrokers where the exit charge is 15+VAT per line of stock, per account. If you have any questions regarding the transfer process and details on the timeline of your transfer please contact the Nucleus transfer team for further information. 7