FundsNetwork to offer clean share classes only by year-end
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.”