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&#39Axing polarisation will increase fund charges&#39

Consumers face an increase in fund management char ges if the polarisation regime is abolished, claims Autif director of communications Anne McMeehan.

Autif is concerned that multi-ties will push up management costs for both big and small fund managers, with the increases passed on to consumers.

McMeehan warns that, under a multi-tied system, specialist fund managers with one or two products to offer would find it increasingly difficult to distribute their funds, forcing them to use the distribution networks of bigger firms. She believes they would have to pay a prem ium for having access.

She says bigger firms would also see costs rise because they face increasing ad costs trying to compete for distribution. As they sign up small fund managers, their costs will rise as they have to accommodate new products in their range.

McMeehan says: “Any shake-up of the regime will result in higher costs to the individual. Specialist fund managers will find their costs rise higher as larger players squeezed their margins. These would in turn be passed on to consumers.

Regency Financial Management partner Bryn Wal ker says: “It is a lose-lose situation which is against everything the Government says it wants.”


Jupiter designs Sipp

Jupiter Unit Trust Managers has entered the retail pensions market with its first self-invested personal pension. The SIPP is a full scheme and has been designed to give investors a last chance to take advantage of the carry forward/carry back rules, which are set to change in April 2001. Contributions made before January 31 in […]

CTC launches e-3PA to mark 10th anniversary

Software systems and administration services provider CTC has launched a third party administration and technical support service to mark its 10th anniversary. Called e-3PA, it will offer a wide range of services to employers, scheme trustees, fund managers, product providers, consultants and solicitors. It specialises in scheme administration, product line administration, calculation and actuarial services […]

Health first

Fidelity Investments – Healthcare FundType: Sicav.Aim: Growth by investing in pharmaceuticals, biotechnology, healthcare services and medical equipment.Minimum investment: £1,000 lump sum, £50 a month.Investment split: North America 65 per cent, Europe 15.5 per cent, UK 12.3 per cent, Japan 7 per cent, Pacific 0.2 per cent.Place of registration: Luxemburg.Yield: Nil.Charges: Initial 5.25 per cent, 1.25 […]

FundsNetwork will offer Pep transfers and non-Isa trusts

Fidelity&#39s fund supermarket FundsNetwork is to extend its service to include Pep transfers and non-Isa unit trusts.The expansion will take place next month. Only Isas are currently available on the platform but Fidelity says it is also looking at offering closed-end funds as well as unit trusts outside an Isa wrapper.Plans are also under way […]


MPAA consultation

By Fiona Tait, pensions specialist The chancellor’s announcement of proposed cuts to the Money Purchase Annual Allowance means it will be more important than ever to be able to tell your PCLS from your UFPLS What was in the statement? Not much. The chancellor spared three sentences to inform us that the Money Purchase Annual Allowance will be reduced […]


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