Aegon has hit out at Skandia over a lack of transparency after the platform announced it will pay rebates from 75 basis points share class funds.
Last week, Skandia announced it will offer 75 bps clean share classes with 8bps rebates.
This comes after HM Revenue & Customs’ announcement in March that unbundled platform rebates must be taxed.
Last month, Skandia said it is focusing on adding clean share classes first instead of seeking lower priced funds from fund managers as it is the quicker solution to rebate tax, maintains net fund costs and does not hinder re-registration.
It says it will demand access to any lower-priced share classes as they are launched.
Aegon head of platform sales Martin Coyle says the only way to achieve transparent pricing across the platform industry is to have clean share classes with no rebates.
Coyle says: “If we are to truly build consumer trust and confidence, we must fully embrace the principles of transparency. However, now we have found ourselves looking down the barrel of even greater confusion with potential tax implications for customers.
“With Skandia having just announced it will offer unbundled funds with a rebate of 8 basis points in units, it means a higher rate taxpayer will pay more if they are getting a rebate because of the tax implications.”
A Skandia spokesman says: “Our priority will always be to give the best price to advisers and their clients.”
Yellowtail Financial Planning managing director Dennis Hall says: “Ultimately what is best for transparency is clean prices across the board.”