Fund management group Fidelity has told FTAdviser it has no plans to create “superclean” share classes offering preferential rates to larger platforms, despite claims from several operators that they will push managers for unique deals following the introduction of income tax for rebates.
Following news that HM Revenue and Customs will tax unit and cash rebates as, several platforms have announced moves to rebate-free “clean” share classes. Standard Life even coined the term “superclean” share classes, saying it will use its buying power to negotiate better rates.
The claims have proved controversial, however, with smaller and medium-sized wrap platform operators such as Axa Elevate, Novia and Transact demanding they be given access to any new share classes issued.
Many fund groups have thus far remained tight-lipped about their position and whether or not they are in negotiations with providers.
Fidelity told FTAdviser that although it will provide ‘clean’ share classes for most of its fund range it will not go as far as giving different rates to different providers, saying it has “no plans” to launch further share class iterations.
A spokesperson for Fidelity said: “The HMRC ruling on rebates has provided clarity for the industry.
“We have clean share classes for the majority of our onshore range and are currently working with platforms to agree a timetable to make these available. We currently have no plans to launch additional share classes.”
Other managers either remained tight-lipped or commented only to say they are waiting for the Financial Conduct Authority’s final rules before clarifying their position.
Gordon Davidson, managing director of Jupiter Unit Trust Managers, said: “Jupiter is waiting to read the conclusions of the FCA’s policy statement on platform rebates before taking a position in the debate on superclean share classes.”
Invesco Perpetual and M&G Securities both declined to comment, while BNY Mellon echoed Jupiter’s stance of waiting for the platform paper’s publication at the end of this month.
Although Threadneedle said it is reviewing its position, the company declined to comment.
Colin Turton, director of Adviser Asset, told FTAdviser fund groups were obfuscating their position after he received lackadaisical response to calls for comment from fund groups, leading him to suspect they are in negotiations with platforms.
Mr Turton said: “Fund providers are just being quiet. You have to say, if it’s going to be a market of single price and equality why is it that all the fund providers aren’t putting their heads above the parapet saying that’s what we are going to do?
“You have to assume that if they are taking a stance of not showing their cards about their negotiating position you have got to assume they have got one.”
David Ferguson, chief executive of Nucleus, said: “Increasingly looks like asset management groups will be [the] most challenged group following RDR. Absolutely not a disastrous outcome.”
