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Alliance Trust Savings completes conversion to clean share classes

Alliance Trust Savings has completed its conversion to clean share classes, becoming the second platform to fully unbundle. 

All bundled share classes have been converted to clean equivalents where an equal or cheaper net annual management charge is available.

ATS gives clients an option to trade out of an investment free of any dealing charges where there is no clean share class or where the clean share class has a higher AMC.

There are close to 80 examples of share classes where clients will be offered the free trade as fund groups including Aberdeen, Axa, Fidelity, Henderson, M&G, Investec and SWIP have either declined to launch a clean share class equivalent or have made a clean share class available at an increased net AMC.   

ATS head of platform proposition Sara Wilson says: “As a business, we strive to lead the way with fairness and transparency, acting in the best interest of our clients, and this conversion reinforces that position. 

“We have successfully completed this conversion within our own deadline of the current tax year, only converting the funds where our clients will be better, or at least as, well off in the clean share class.  We have also been very pleased with the support we have received from the fund groups in helping us reach our deadline.”

The FCA has banned cash rebates and fund managers on new business from April. For existing business, investments can remain in bundled share classes until April 2016, after the regulator gave a two-year sunset clases to allow platforms to change their business models.

Standard Life completed its bulk conversion exercise in December. It estimates less than 1 per cent of platform assets cannot be converted due to a lack of a clean alternative with an equal or lower net AMC. 

Money Marketing reported last October on problems arising for advisers and platforms where fund managers have not launched equivalent clean share classes on certain funds. 


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