Suspended Funds In Your Pension?
An Investors Worst Nightmare
Five weeks after the Woodford Fund Suspension, clients of Hargreaves Landsdown were told that they could switch their investment to a rival platform. Having initially been told that their holdings were Z-class shares and that this share class was not available on rival platforms. The FCA has proposed new rules that would require platforms to offer clients the option of this type of ‘in specie’ transfer so investors can still own the same investments, even when they switch to a new provider.
The story for Expat clients on the remainder of the funds outlined in this article is more complicated. To in specie transfer, a suspended fund is fraught with difficulties. It may not be possible to complete an in specie transfer, and you must hold the illiquid asset and remain with your original investment provider. This often means that the client cannot move any of their portfolios to another provider until this suspended asset has become liquid again.