View more on these topics

Advisers hit as trail cash is slashed

Amendments to trail commission on a number of fixed interest, property, tracker and money funds have also been attacked for being included in the small print of the proposals for the combined Skandia/ Selestia platform. Renewal commission on fixed interest and property funds has been cut from 0.5 per cent to 0.35 per cent while commission on tracker funds has been halved to 0.25 per cent and cut to zero on money market funds.

Sheffield-based Warnes Anderton IFA Glenn Warnes says: “Since the merger of the two wraps, they sent through the terms and conditions outlining they have changed their basis of commission payments.

“This cut has reduced my income by about £3,000 a year or about £60,000 renewal over a 20-year period. I did not ask them to merge platforms. If this was just on new customers then fine but to apply this retrospectively is just terrible.”

Hargreaves Lansdown senior adviser Ben Yearsley says the property fund changes will affect thousands of advisers.

He says: “It does not surprise me with regard to trackers and fixed interest funds but property has an annual management charge of 1.5 to 1.75 per cent so there is no reason for them to do that. I cannot imagine Cofunds and FundsNetwork following suit so surely the Skandia/Selestia platform will lose business at such a competitive time for the platform market.”

Skandia platform marketing manager Peter Jordan says the changes have been made to ensure the platform is economically sustainable and to avoid the build-up of legacy systems by running separate pricing for Selestia and Skandia clients.

He says: “The changes will help to secure the long-term future of the platform. Adopting the same structure for all Selestia and Skandia MultiFunds clients is a key aspect of ensuring sustainability as it avoids maintaining legacy business on less favourable terms.”

Recommended

Ferguson to be first woman to chair AIC

Carol Ferguson is to become the first woman to chair the Association of Investment Companies, replacing Hamish Buchan, who steps down on December 11. She has been deputy chairman since 2004.

Nationwide 25-year fix at 6.39% has decade’s ERC

Nationwide has responded to Chancellor Alistair Darling’s calls for more 25-year fixed-rate mortgages by introducing a loan starting at 6.39 per cent.But the product has been described as uncompetitive by Savills Private Finance director Melanie Bien.The mortgage is fully portable and has no early repayment charges after the first 10 years. The rate rises from […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com