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Separately managed accounts and portfolio administration service provider Praemium has said it has launched the UK's first funds which allow clients invested in the same fund to agree different adviser remuneration.

Using SmartFund technology, the five risk-based fund of funds have a structure permitting clients in the same fund to agree different adviser payment according to the level of service they receive or type of charges, for example commission plus or without a fee.

John Martin, managing director of Praemium, said the proposition was influenced by the retail distribution review and had received a positive reception from the FSA.

He said: "The funds are in a unit trust structure with each unit corresponding to a client.

"Of course, we have embedded certain safeguards with regards IFA remuneration and when we set up the service with the IFA firms we agree with each business what the maximum amount is."

Nigel Whittingham, director of Old Broad Street Research, said it was providing investment selection for the new proposition and stated it would help advisers with both compliance and streamlining of work.

He said: "IFAs have to do a lot to a portfolio on the basis of economic changes yet at the moment, for every change they make, they would need to go back to the client to get sign off. As the funds are done on a risk profile, this is done automatically.

"Another useful feature is that a client with an identical profile will have his portfolio altered in the same manner. This is good when you consider the FSA will look at consistency and fair treatment of customers. IFAs, particularly, in large firms can be overwhelmed by the sheer amount of administration that it can take to make one small tweak.

"The whole process is also transparent and you can see exactly where money has been placed including details on underlying funds."

Mr Martin confirmed the technology had received interest from platforms including Cofunds.

He said: "We are in talks with platforms about this and we are currently building links with Sipp companies and offshore bonds.

"Although this has received interest, we do not see other UK companies joining us in this sector for a while. It takes a lot of technology and this has to be built up in order that clients and advisers can feel the benefits of this service."