You are here: Home - Investing -

FundsNetwork to offer clean share classes only by year-end

Written by:
Fidelity's FundsNetwork platform is to offer all new unwrapped investments, ISA, and pensions through clean share classes only by the end of the year.

The change will be effective from 9 December, giving clients a pricing model comprising a £45 investor fee and a 0.25% p.a. service fee, which the group said will be both simple and transparent.

There will be no initial or switch charges, and trail commission on existing assets will remain unaffected until advice has been given.

The newly launched FundsNetwork Pension already adopts a clean only approach.

FundsNetwork launched its first unbundled funds and clean pricing model in April last year to sit alongside its existing bundled range. Up until now the choice of share class has been optional for advisers as it looked to grow the number of clean share classes available on the platform.

The group will write to advisers and their clients with full details of the changes in the coming weeks.

FundsNetwork has also confirmed it has no plans to turn off trail commission ahead of the April 2016 deadline and is continuing to see an increasing amount of advisers make the transition to fees and clean share classes, supporting the move to the clean pricing model across the platform.

Pat Shea, 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. While 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.”

Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Cover of darkness provides rich pickings for burglars

Brits are being reminded to secure their homes and remain vigilant to prevent falling victim to opportunistic thieves.