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FundsNetwork to go clean on new business from December
by Michelle Abrego on Oct 14, 2013 at 13:19
FundsNetwork has unveiled plans for all new business to be in clean share classes only from 9 December onwards.
All new business via ISAs and unwrapped investments will be clean only with the recently launched FundsNetwork Pension already adopting an unbundled approach.
The platform will charge an annual £45 fee and 0.25% service charge with no initial or switch charges. Its new charging structure will come into force when a new fund is purchased or existing assets are disturbed.
FundsNetwork said existing business will continue to pay rebates and confirmed that it has no plans to turn off trail commission ahead of the April 2016 deadline.
Pat Shea (pictured), head of FundsNetwork said: ‘With more than 1,800 clean share classes on the platform and advisers making the move to fees, it feels like the right time to make this move into the clean-only world.
‘Whilst bundled funds will remain on the platform until 2016, it makes sense to start 2014 afresh offering clean-only funds for new investments. We have chosen not to turn off trail commission ahead of 2016 as we believe it is up to advisers and their clients to initiate this at a time appropriate for them. However, we are working with advisers on how best we can assist them in moving undisturbed assets to clean funds ahead of the deadline and will communicate this in due course.’
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