Share Class Conversion

As announced in last month’s Adviser Update, in our efforts to provide a better consumer outcome under the Consumer Duty rules we have opted to convert ‘rebate share classes’ that clients hold into clean share class equivalents where clients can benefit from cheaper or no more expensive share classes. The clients do not require advice for this type of conversion or need to give instructions to us. In April we emailed all advisers and shared details of all clients who received a rebate in the last year. The scheduled conversions are:

	Date of last accepted trade (received before 1pm)	Conversion date
Invesco	26 May	6 June
Schroder	12 June	23 June
First Sentier	19 June	30 June
Baillie Gifford	26 June	7 July
Jupiter	3 July	14 July
Merian	3 July	14 July

Clients will receive contract notes in the usual format following each conversion.

Clients Affected

A schedule of the dates of conversion for each fund and share class is available within the spreadsheet hosted here and will be continuously updated over the coming months for future conversions.

Models and Templates

The models and templates containing the funds that are being updated will be automatically converted to reflect the clean share class as a part of our exercise. Until the conversion has been completed, your clients’ buys into these rebate share class funds (including regular buys) and Transfers in will be restricted. During this window you will be unable to purchase or sell units for these funds. Rebalances of templates which hold these funds will also be unavailable.

Share Class Conversion Tool

You do not need to wait for us to convert funds. If you would like to convert clients’ funds sooner simply use the Class Conversion tool on TOL. To check to see if your clients are in the most appropriate share class on the Transact platform go to Transactions > Class Conversion. There you can see a list of the investments that your clients own and, if there are any cheaper share class options that they could move to, you can instruct the class conversion there and then. Naturally, you will need to ensure that the new class is appropriate for your clients. The client will get a contract note from Transact once the fund manager has confirmed the conversion is complete.

1. Introduction
2. Transact Online (TOL) – Recent Enhancements
3. The Year of the Transfer
4. Consumer Duty & Cash Interest
5. How to Make Your Business as Fit as a Fiddle
6. Share Class Conversion
7. Transact- BlackRock MPS Update
8. Adviser Succession Planning
9. Strategy Changes for Pension Planning Following the Budget
10. Fund Changes
11. Interest on Cash Deposits
12. Transact Events 2023