PlatformsMay 22 2013

FundsNetwork: 95% of assets will be ‘clean’ by June

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ByDonia O’Loughlin

FundsNetwork has announced that 95 per cent of its current platform assets will have clean share classes available by the end of June.

Over recent months, FundsNetwork said it has been adding between 100-200 clean share classes per month.

Responding to the recent platform paper and demand from advisers, additional resources have been put into increasing this to around 400 per month in May and June, the platform said, giving advisers will have access to clean share classes on 95 per cent of the existing funds.

Clean share classes will be available from the majority of providers. Recent additions include funds from BlackRock, Invesco Perpetual, Royal London and Legal and General.

The announcement follows the recent HMRC ruling on rebates, which heightened adviser demand for access to clean share classes.

Skandia recently announced that it was re-evaluating its approach in the wake of the HMRC announcement.

Fund management group Fidelity 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.

Paul Richards, head of sales at FundsNetwork, said: “The recent platform paper and our ongoing conversations with advisers have reinforced the need to accelerate our clean share class take on to help advisers migrate their business models.

“We will achieve broad fund coverage well in advance of the April 2014 deadline for new business and will add more as fund groups make them available.”