Nucleus, the UK-based online wrap platform provider, has accused platforms of "dragging their heals" and called for the removal of re-registration fees as well as other barriers which hamper the transfer of assets.

In a white paper released at the end of last week, Nucleus said that re-registration was hampered by charges, particularly for smaller portfolios, and that the financial services sector was still in the "relative dark ages" when it came to consumers having the freedom of choice to change provider.

The firm also highlighted how barriers to exit included the difficulty in re-registering different share classes and the speed of re-registration which could take between two to eight weeks. It said that if firms embraced digital options, the process could be reduced to as little as six days.

It also said that the Financial Conduct Authority had made re-registration compulsory but had failed to make a ruling on the charges.

Re-registration allows the ownership of units or shares to be moved from one entity to another. This is different from transfers where the assets need to be sold down, cash transferred and units or shares re-purchased.

It has a number of possible client benefits over transfers as there is no risk to market exposure because it is never out of the market and there are no unintended tax implications. Re-registration also avoids the possibility of initial charges, such as bid offer spread or trading charges, when repurchasing units or shares.

“If British Gas or O2 acted like this when customers wanted to change supplier, dragging their heels and slapping on charge after charge, there would be outrage from consumers and ministers demanding answers. Perhaps, because financial services is complex, providers are able to get away with this kind of behaviour," said David Ferguson, chief executive of Nucleus.

"The only barriers that exist are behavioural barriers, where platforms are unwilling to embrace change and offer a fair and transparent system to customers. There’s no valid reason why it should take up to eight weeks to move assets and there’s no valid reason why platforms should charge for the privilege either," he added.