Cofunds to offer unbundled pricing option

27 January 2010 3:46 pm | By Tracey Scott

Sales and marketing director Alastair Conway says the platform plans to offer the pricing structure “ towards the end of 2010 and drifting a little into 2011”.

He says: “We will offer an unbundling pricing options so we will have two pricing options. It is all about choice.”

Conway says Cofunds is still working on how the unbundled structure will work and whether or not it will get rid of rebates altogether.

He says: “It really is whether or not we manage a rebate back. Now the downside to that, which might be unavoidable when we decide on our solution, is the customer sees lots of rebated charges coming out and it confuses people.

“That feels messy. So if we can get rid of rebates it will be a lot easier for people to understand what they are paying.

“That is the preferred option ideally.”

However, Conway adds: “One of the reasons we haven’t resolved this yet is because of the RDR. We are not going to press the button and say that is what we are going to build until we have seen the final paper from the regulator.”

Skandia revealed today that it is developing a new unbundled pricing structure on its platform, splitting out adviser, fund group and platform charges.

The new structure will be run in parallel with the current bundled charging structure on the Skandia Investment Solutions platform.

Last week Last week Axa announced that it is removing the 1.5 per cent initial charge on the bundled pricing model of its Elevate platform.

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