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FundsNetwork unveils adviser charging approach
by Jun Merrett on Jul 23, 2012 at 09:43
Fidelity FundsNetwork is to launch an adviser charging facility in October, setting no maximum limit for IFA remuneration.
The facility will apply across both the platform’s bundled and unbundled charging models. It will allow advisers to choose initial and specified fees. They will be able to choose to charge ongoing fees on monthly or quarterly basis.
The platform already operates an ongoing fee service for advisers, and IFAs signed up to that system will be automatically migrated across to the adviser charging system.
Klare Baldwin (pictured), head of marketing at Fidelity FundsNetwork said: ‘We’re migrating the advisers and customers onto the new service, then any new adviser who hasn’t put their clients onto [the current] ongoing fee facility will be put onto the new one.
‘We are not setting any maximums. We strongly believe the agreement is between the adviser and their client, so it is between the two of them [to decide] the level of fee that the client will be comfortable with.’
Fees will be taken either via unit deduction from a nominated account or through clients' cash management accounts.
Any legacy business that receives commission will remain separate to the adviser charging facility. However if an action is taken eg a switch or advice is given, the adviser charging system will be triggered and the adviser will have to agree on a fee with their client.
Platform rival Skandia Investment Solutions released details of its adviser charging proposition in May. It set maximum adviser fees of 4.5% for initial, 3% for switching and 1.5% ongoing.
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by Jun Merrett on May 24, 2013 at 11:21