Skandia develops unbundled pricing and cash account
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Skandia 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.
Skandia says it is also developing a flexible cash account will to offer advisers flexibility around how portfolios are managed. It will include the handling of fees, charges, contributions and income distributions as determined by the needs of the client and adviser.
Skandia is also broadening the investment options available on its platform, including a wider range of unit trusts, Oeics, ETFs and investment trusts.
Additional asset classes such as direct equities and gilts will also be added in due course.
Last week Axa announced that it is removing the 1.5 per cent initial charge on the bundled pricing model of its Elevate platform.
However, a 0.5 per cent charge will remain on Elevate’s explicit charging option.
Skandia chief development officer Peter Mann says: “The requirements of the retail distribution review and the natural evolution of how platforms are used by independent financial advisers are leading the way to universally unbundled charging structures. However, in the period running up to RDR it would be wrong for a platform to dictate to advisers how they run their businesses and therefore we will continue to offer advisers choice by running two charging structures in parallel to give them maximum flexibility.”
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Readers' comments (1)
Anonymous | 27 Jan 2010 6:58 pm
Sorry Mr. Mann but this story is getting a bit old. I don't have time to search the news archives but certainly recall reading and hearing about these "new developments" at various Skandia roadshow events. I also note that, per usual, no release dates are given (guess the Skandia/Selestia merger saga has made you understandably gun shy about making commitments) but instead we get the customary "under development" drone.
Please wake me when these enhancements actually go live (although by that time, my business will have moved to a platform that actually delivers rather than blusters).
Dear Money Marketing:
Can you please do your readers the service of sifting out such PR fluff and reserving your space for items that are actually newsworthy?
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