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Fidelity FundsNetwork makes transparency pledge

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Fidelity FundsNetwork says it would offer a full breakdown of all rebates it receives from fund firms but the disclosure would have to be made mandatory across the industry.

At a Money Marketing round table last week, Fidelity head of UK fund partners Ed Dymott (pictured) said the platform would be happy to publish the rebates it gets from fund companies but only if competitors also offered similar disclosure.

He offered this as an alternative to banning bundled charges. He said: “If the FSA were to ask us to offer this information we would do that. That would need to be done as an industry though because obviously if we just do it off our own back it would put us at a competitive disadvantage.”

Skandia platform marketing manager Jeremy Mugridge would not commit to rebate disclosure on the firm’s bundled charging structure.

Yellowtail Financial Planning managing director Dennis Hall says: “What we need is complete transparency but I respect Fidelity’s decision that if nobody else does it, the company would lose some competitive advantage. There probably needs to be some lead from the regulator that this should happen.”

Concept Financial Planning managing director Paul Richardson says the contracts between platforms and fund managers may not allow the platform to disclose rebates even if it wanted to.

He says: “It would potentially uncover preferential terms and you would have everybody else fighting over them.”

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