Fidelity FundsNetwork launches ongoing fee service
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Fidelity FundsNetwork has launched an ongoing fee service for advisers.
Advisers who use the service are able to agree an ongoing fee as a percentage of assets with their clients, instead of taking different levels of ongoing commission from each fund.
The ongoing fee, under client instruction, will be offset against the natural trail commission of the clients’ fund holdings. Should the fee exceed the ongoing commission amount, units from a nominated fund will be redeemed to make up the difference.
In the case that this fund cannot cover the payment or a fund has not been chosen this will default to the largest fund holding within the client’s product. In cases where the ongoing fee is less than the natural ongoing commission, the difference will be refunded to the client.
Fidelity International head of UK retail sales Peter Hicks says: “The adviser ongoing fee service will give advisers better flexibility for remuneration they want to receive and at what level. It will also allow for increased transparency and clarity over charges, for both the adviser and the client.”
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