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FundsNetwork spies adviser demand for platform charging change
by Michelle Abrego on Dec 06, 2012 at 07:46
Fidelity FundsNetwork has said it is in talks with advisers who want to change the way they pay for platforms, with IFAs picking up the bill rather than investors.
Speaking at the Institute of Economic Affairs' The Future of Distribution in Financial Services conference, Fidelity head of business development Ed Dymott (pictured) said the platform had been in talks with advisers over the change.
He said he had been told by some advisers: '" I charge my clients a fee and as part of that fee I will pay for the platform administration services myself." It's not commonplace but possibly over time that will [take off].'
Cofunds sales and marketing director Alastair Conway said that current platform charging structures, which see investors paying directly for wrap services and through fund rebates on fund supermarkets, required platforms to prove their worth to investors.
'It is incumbent for platforms to think about how their technology is helping the adviser and if the investor can see the value in it,' he said.
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