Experts say other firms are likely to follow Skandia in launching low-cost fund panels with limited ranges.
In its half-year results, published in August, Old Mutual Wealth Management announced it is developing a low-cost fund Select range targeted at restricted advisers who want to build their own model portfolio service post-RDR.
Skandia recently announced the range would include Aberdeen, BlackRock, BNY Mellon, Fidelity, Henderson, JP Morgan, Schroders and Threadneedle. The panel will have around 50 funds covering all major asset classes.
The provider says it will not reveal the charges, which it hopes will entice advisers to recommend the Select range, until next year.
The funds in the new range will be run as sub-advised retail mandates. M&G is unable to provide sub-advised retail mandate services and so Skandia has agreed M&G will be a strategic partner and the firms will look to find a solution to enable M&G to join the range at some point.
Chelsea Financial Services managing director Darius McDermott says: “I expect you will see more restricted panel offerings like these in the post-RDR world.”