FundsNetwork RDR model will see move to monthly payments
Platform rolls out a new fee adviser service for both its bundled and unbundled proposition.
FundsNetwork is launching a new adviser fee service that will see the payment frequency for ongoing charges move from quarterly to monthly, the platform’s head of marketing has told FTAdviser.
Klare Baldwin, head of marketing at FundsNetwork, said the new fee service, called the Adviser Fees, will deal with ongoing, initial and specified fees.
For example, Ms Baldwin said if an adviser agrees with a client a specific ad-hoc fee, it can enable the fee on behalf of the adviser.
Ms Baldwin said the new service, to which all advised clients already set-up on the Adviser Ongoing Fee service will be moved, will be up and running in October.
Ms Baldwin said: “The new system has lots of flexibility for advisers. In terms of the fee mechanism, the commission will be banned so all commission will be rebated back to clients.
“They can nominate a fund for this, or a cash manager account if they have that set up or if they don’t nominate a fund, it will be taken out from the larger fund.
“Advised clients already set-up on the existing Adviser Ongoing Fee service will be moved onto this new proposition. If they have set up an ongoing fee on the current proposition, it will automatically migrate advised clients and the adviser does not need to do anything as long as the level of fee remains the same.
“We will write to advisers and their clients to advise them of the change and to provide them with new terms and conditions in advance of the migration happening.”