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Ascentric follows Standard and Novia in cutting rebates
by Jun Merrett on Sep 20, 2013 at 08:01
Ascentric is following Standard Life and Novia in cutting cash rebates on new and legacy business through a bulk transfer of assets into clean share class funds.
Platforms have been divided over the approach to the movement towards clean share classes. Novia was the first to commit to a bulk transfer despite the Financial Conduct Authority deeming legacy cash rebates would be allowed to continue in some circumstances.
Skandia, which will be affected by the ban on legacy fund manager rebates coming into force in April 2016, has committed to continue offering trail-paying funds until that point, while AXA Elevate has also shunned a bulk conversion to clean funds.
Ascentric said it would begin the bulk transfer process towards the end of the year.
Hugo Thorman (pictured), managing director of Ascentric, said: 'We're going to do bulk transfers because there is no need to put in place unit rebates, all of the new funds are going to be bought in the new clean share class and we can't see any point in clients having a mixture of old units and new units in the same fund.
'We think the right thing to do is to adopt one method. We think the instances where people will want to keep the retail share classes will be so small because of the tax and the feedback we're getting from the advisers is that they want to move to get rid of the tax. They want to move as quickly as possible so we're just responding to what advisers want.'
The platform is also asking advisers not to move over their clients' assets themselves as it will interfere with the bulk process.
Ascentric has also soft launched its execution-only offering, Investor Direct.
The platform which is available for advisers to white label, is currently being used by three firms.
Investor Direct, which currently offers the same investment offering as the Ascentric platform, is scheduled to be launched in 2014.
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by Himanshu Singh on Dec 08, 2013 at 05:41