The service will be called ‘adviser on-going fees’ and will be fully launched by the end of this year.
Advisers will agree with the client an on-going fee which can cover selected products or their entire portfolio, instead of their remuneration being driven by the level of on-going commission from each fund.
The service will be optional for advisers and will not replace or change any commission structures already set up should the adviser not want to use the adviser on-going fee.
Isa and collectives are the initial products available through the service.
Fidelity head of UK retail sales Peter Hicks says: “The adviser on-going fee service will give advisers better flexibility over remuneration they want to receive and at what level. It will be transparent and clear to the client and adviser, with the adviser remuneration being agreed between them.”