Can you explain this - income mandate and distributions letter?

infj

Hi, I am currently in the middle of transfering all my share funds from BestInvest/ Aegon (or Evelyn whatever they are called now!) to another investor platform.
I've just received a letter from Aegon saying the below. I have no idea what this means - can someone explain it simply and do I need to do something now or later when the transfer is complete?

"Please be advised following your request to fully transfer funds we have made some changes to your income mandate. Once your transfer has been completed, your distributions will be amended to remain in cash rather than reinvested into a fund or paid out as natural income."

Thank you 

EthicsGradient

It sounds like you had an arrangement with Aegon for dividend income to either be reinvested into the fund it came from, or to be paid into your current account. They're saying that after the transfer, it will stay as cash in your investment account, unless you arrange something else with the new platform.

infj

@EthicsGradient - thanks - yes, that makes sense. So when the transfer is complete I'll have to ask Aegon to send those remaining dividends to the new platform. I've just had to do something similar with another fund which was being closed by a different provider.

LHW99

Aegon should send any dividends it receives after closure on to the new platform (as Aegon will no longer have an account in your name). Its likely that there will be a delay, as they may wait until all the outstanding ones come in and send them in one payment. You would need to let the new manager know if you want any dividends invested or kept as cash in future.