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Cofunds writes to fund groups demanding access to all preferential deals

Cofunds has written to fund managers demanding contractual rights to access any preferential share classes that they launch. 

A letter sent earlier this month says the platform wants to amend its contractual arrangements with fund groups to include the condition that it would be able to have access to any lower-priced share classes launched.

Cofunds head of marketing operations Stephen Wynne-Jones says: “If fund groups are going to offer preferential terms to a certain type of distributor we would expect that to apply to those distributors using Cofunds.

“We have written to fund groups proposing a change to contracts which we are entitled to do. We are always fighting for the best rates to offer our distributors. I would imagine that one or two fund groups are not happy but broadly speaking we have had positive reaction to it.”

The Lang Cat principal Mark Polson says: “This does feel like a bit more of an aggressive move than others have made. However it makes more sense than having to go round each fund manager requesting access each time a new share class is launched.”

Standard Life says it has agreed preferential terms with seven fund groups so far.

The move to preferential share classes follows the HM Revenue & Customs decision that rebates were subject to tax from 6 April this year.

Money Marketing revealed last week Cofunds had dropped its annual £40 charge on its unbundled charging structure following a pricing review.

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