Fidelity to launch free buying and switching option for advised clients
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Fidelity FundsNetwork is to launch a new pricing option which will remove the need to pay initial or switching charges in exchange for an annual fee.
Advisers will be able to opt in to the new pricing structure from August 9, though the current charging model will remain for advisers who wish to continue using it.
Under the new pricing option clients with over £50,000 on the platform can pay an annual account fee of £45 and as a result will not incur buying and switching charges for individual transactions during that year.
New business clients with assets of more than £50,000 on the platform will also qualify for the pricing option, as will future new business that takes clients’ holdings over £50,000.
FundsNetwork is also offering a payment holiday as part of the new pricing structure which means although the ability to opt in will be available from August 9, the £45 annual fee will not be levied by the platform until the second half of 2011.
The changes have been brought about as a result of adviser feedback.
The new pricing structure also factors in single and joint account accounts into the total platform holding.
Fidelity International head of UK retail sales Peter Hicks (pictured) says: “Advisers have asked us to help them better support their high value clients in a more cost effective and straightforward way. What’s clear from the feedback we’ve had is that for many clients a transaction charge can sometimes become a barrier in itself. We’ve listened and created a new pricing option to remove that barrier.”
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