Offshore Bond Custodian Transfer
DaleLucas
Member
Hi,
Some guidance would be much appreciated.
We have a client who has an Utmost Offshore bond, currently held by Raymond James, client wishes for this to be held under AJ Bell so that we can assume servicing rights as they feel like the service they are currently receiving isn't up to scratch.
Does anyone have any experience or guidance as to what the process might look like?
Thank you
Dale
Comments
Hi Dale
Servicing rights to the bond are granted by Utmost, not RJ. It's possible that you can have servicing rights on the bond and also on the underlying investment platform. This can be useful if the adviser wants to run a MPS on the platform without needing to go through Utmost for a change. It also allows for easier valuations. But if you are the servicing agent of the bond then the existing adviser shouldn't have any rights with RJ.
If it is RJ itself that the client isn't happy with, then you can ask Utmost to close that account within the bond. Utmost has a very large range of funds (depending on the product) without the need for a third party platform, so you should start there. Assuming you can't put a decent portfolio in place from what is available, you can then use AJ Bell, assuming Utmost allows AJ Bell to operate as a third party.
Process is something like:
You find out what is suitable for the client, either using Utmost internally available funds, or creating a new custodian account with a suitable platform and recommending your portfolio.
You write the SR explaining what's happening.
You ask Utmost to close the RJ account.
The cash is returned to Utmost.
You open the new AJ Bell account.
Utmost sends the cash to AJ Bell.
You manage the investments on that platform.
@benjaminfabi
Thank you! Much appreciated.