Quilter and Principal revisit trail fees ahead of RDR

Quilter and Principal Investment Management have said they are reviewing their stance on retaining trail commissions ahead of the retail distribution review (RDR).

Both discretionary managers said they currently retained the trail from retail share classes paid from funds they buy for clients.

In a statement, Quilter said it always attempted to buy cheaper institutional share classes for investors, but would buy some retail units and keep the trail in those circumstances.

Stephen Vakil (pictured), managing director, said: ‘Where we cannot access institutional units, we buy retail units when we consider it to be in clients’ best interests. In accordance with our terms and conditions, we will retain any trail.’

Principal, majority-owned by insurer Sanlam, said it retained trail to bring down its annual charges.

Adrian Jewitt, sales and marketing director, said: ‘Fees would have to increase without commissions.’

Both Principal and Quilter said they were reviewing their existing policies in the run up to the RDR.

Adviser Steve Moseley has criticised rival discretionary manager Brewin Dolphin's practice of retaining trail on retail funds it buys.