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Cofunds offers to negotiate pricing terms

Cofunds is offering to negotiate pricing terms with the top 30 or so fund groups as part of its proposed fee changes.

Director of fund manager relations Russell Lancaster says that it makes commercial sense for the platform to offer negotiating terms to leading fund groups as part of its proposed fee changes.

Money Marketing understands that a number of smaller groups are unhappy at the changes proposed by Cofunds.

Under the proposals, groups are to pay an increased fee based on a split of new sales into their funds, the level of servicing required as well as existing assets. The lower the amount of sales on the platform, the higher the fee rise.

Lancaster says: “We are having individual discussions with around 30 of the leading fund management firms and we do understand that some of the smaller groups would be unhappy with that but we have written to them and they are aware that our door is open if they want to talk to us.”

Representatives from 18 fund groups met last month to discuss possible ways to tackle the proposed fee increases.

Informed Choice managing director Martin Bamford says: “You expect platforms to offer all funds and it is the adviser and not the platforms who should be able to choose funds for their clients.

“Therefore, the platform should do all it can to keep all the groups happy.”

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