Fidelity's fund supermarket is set to go live without some of the major
fund management companies yet on board.
Insiders say many high-profile names have not yet signed because they are
concerned that linking up with Fidelity will damage their relationship with
It is understood that several major investment houses, including Gartmore,
Threadneedle, M&G and Schroder, have yet to sign up to the venture which is
being launched in June.
They fear that their relationships with intermediaries could suffer
because Fidelity will hold all customer records and will be able to provide
IFAs with all the information they need.
Fidelity now has a fight on its hands to convince groups to join up for
its service, which will offer investors the choice of going through an IFA
or doing it themselves via an execution-only service.
It will pay IFAs commission levels matching the rates of traditional
channels and is to offer more than 300 funds from 12 major groups.
A fund industry insider says: “It could be like putting your head in the
mouth of a lion and it will either bite your head off or you will emerge
unscathed. We are very concerned.”
Fidelity executive director Robin Threadgold says: “We are keen to attract
the major Isa players and they will add value to the service. We aim to
have 12 providers for the first phase and we are confident that this will