Fidelity FundsNetwork is considering discounting annual management charges on funds for direct investors.
Fidelity International head of UK fund partners Ed Dymott says the group is considering the move ahead of the RDR, which he says will lead to increased price competition for retail clients.
Dymott says: “It is something that we are considering and we continue to assess what we do in the direct marketplace.” All the major platforms offer discounts on initial charges, which tend to be around 5 per cent, but not all offer rebates on AMCs for direct clients.
Funds Network offers AMC rebates for many of its bigger IFA customers in addition to healthy initial charge discounts. Hargreaves Lansdown offers AMC discounts on its most popular funds for direct investors. A FundsNetwork special offer for direct investors, scrapping initial charges on the platform’s select list ended this week.
Philip J Milton & Company managing director Philip Milton says: “I cannot see this endearing Fidelity to the wider IFA community in relation to the use of FundsNetwork. It will not affect us but could encourage investors to go direct more often.