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Fidelity looking at direct discounts

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.


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There are 3 comments at the moment, we would love to hear your opinion too.

  1. If that’s what customers want, then they can, save a bit of money, get no advice, either initial or ongoing.

    We’ve always found Fidelity a pain in the backside to deal with anyway, so this won’t affect our present relationship with them.

  2. well done. Long overdue. Certainly post RDR a fund currently charging 1.5% including 0.5% trail should see a reduction of up to 0.5% pa

    The idea that this will not endear Fidelity to the wider IFA community just shows the degree to which advisers are still selling product rather than giving advice.

    When advisers start to advise they will want their clients to deal direct at the lowest possible charge

  3. @Julian

    This need not be about saving money. The adviser gives the advice and charges his fee. The client then goes to Fidelity, if they wish, and makes the investment.

    Operating this way will result in true factory gate pricing and we will see just how much clients value or otherwise the advice on offer.

    My guess is that it will take years for many advisers to cut the umbilical cord which links them to providers but for advisers to to taken seriously the cord will have to be cut eventually.

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