Models and portfolio administration
We have identified an issue with how cash holdings were migrated in cases where accounts held cash in both models and at product level. In this instance all cash was moved to inside the model.
What are we doing about this?
We recognise this may have created a number of issues for you and your customers.
We’ve now implemented a fix that will put any affected customer’s portfolios back to the expected values and asset allocation. To achieve this, we will look at the amount currently held in cash within the model and compare it to the target model cash weighting. We’ll reallocate any cash in excess of the cash weighting, to the customer’s product cash. This will reverse the movement at migration returning the split of the cash holding back to how it was before migration.
Please note that some advisers have already taken action to realign the holdings manually and these won’t be included in this exercise.
When will this happen?
We’ll apply the fix across all models over a number of days, starting on Friday 16 February. Our expectation is that this will take several days to complete and we’ll update you when the fix has been completed.
However, we won’t be able to run this fix where there is a pending trade on an account. Because of this, we’ll put any accounts with pending trades in a queue and apply the fix as soon as the trades have completed.
Once we’ve applied the fix, you’ll see a cash movement appearing in the customer’s transaction history.
Disinvesting for withdrawals and charges
The way we take Aviva, adviser and DIM charges hasn’t changed. We take these from product cash where there is enough cash to cover the charges. Where there isn’t enough product cash, disinvestment will trigger proportionally across a customer’s portfolio.
For withdrawals, the system won’t target product cash unless specified. Instead, it will disinvest proportionally across the portfolio. If you’d like to make your customer’s withdrawals from product cash, please make sure you specify this as part of the regular withdrawal process or edit existing regular withdrawals.
We recognise that we haven't communicated the impact of the migration on product cash clearly enough and we apologise for any effect this has had on you and your customers’ money.