The new 'Head Account' structure

Understanding the new ‘Head Account’ structure

Our new technology has been designed to link your client’s accounts or bonds together under a single customer reference or ‘Head Account’. This is similar to our existing account structure, where all accounts and bonds fall under a client’s ‘customer reference number’, now with the benefit of being able to automatically link assets between family members.

The Head Account will have accounts or bonds linked directly to it, which are then given their own reference number, for example 001, 002, 003 (see part 2 below). The first part of the account reference is the same for all accounts under the same Head Account.

Multiple head accounts - guidance for advisers

Please be aware that there will be cases where some clients will be given two customer references (Head Accounts). Some of these will be created at migration but they can also be created inadvertently in the new platform system. This may cause some confusion with clients. It also has implications on us, in our treatment of those separate accounts from a client money perspective.

When a client has multiple Head Accounts it means that:

• Because we issue statements based on each customer reference (Head Account), investors with more than one customer reference will receive more than one set of statements covering the accounts held under each reference. These will be issued based upon the anniversary date of the first account that was opened under each separate customer reference.

• Any reports created in the new system, such as from Uscan, will be done at Head Account level and therefore you may require a number of reports to encompass all of a client’s investments.

• Customers may miss out on benefits such as family linking and therefore aggregated platform charge discounts.

There are a number of scenarios where customers are being migrated with multiple Head Accounts and we will communicate that detail to relevant advisers. These may include where clients may have: 

• Multiple ISAs on the current system, for example they may have an ISA and an ISA (formerly PEP).

• Multiple CRAs on the current system, for example they may have multiple crystallised or uncrstyallised accounts designated for different purposes.

•  Clients with accounts under two different advisers at the same firm.

Post migration there are a couple of scenarios where you may inadvertently create multiple Head Accounts, here’s how they might occur and what you can do to prevent them:

• If you are giving advice to a client who you don’t normally look after, and they already have an account(s) set up with us. This is because a new Head Account is created if business is submitted by another adviser. Please liaise with any other advisers in your firm when you/they are giving specialist advice to one of your firm’s clients and if possible you can assign the client to the new adviser before setting up the account. Where a client needs to have different advisers on two or more different accounts, on setting up the new account(s), a new Head Account will always be created.

• If you inadvertently set up a new client record when setting up an account for a client. Perhaps where you are unaware they already have an account or you do so when processing new business following a quick quote or similar process. Please always check whether a client has a record before setting up a new account for them.

Thank you for taking on board this guidance when setting up clients on the new system and please do not hesitate to contact us if you are unsure on any of the points above when setting up new client accounts.