At least two platforms are believed to be receiving inducements from fund firms in exchange for making it on to their preferred fund lists.
At the Money Marketing wrap and platform round table last week, Nucleus chief executive David Ferguson said: “There is no question there are at least two platforms in the market that get incentives from fund managers to be in their preferred list.
“I am not going to name who they are because it is not appropriate but there are at least two who have preferred lists of fund managers who get better terms from those fund managers in accordance with the assets with them. That is outrageous.”
On the subject of shelf-space fees and guided architecture, Ascentric business development manager Alan Ferguson said: “I think that we should be trying to get to a position where there is full clarity, full transparency and where there is effectively a free choice in terms of funds and a free choice for the wrapper.
“I think that is really important because with some of the wraps you have only got one choice and that happens to be their own product and I do not think that is right.”
Fidelity head of UK fund partners Ed Dymott said that the company would support guided architecture where it is backed by investment integrity. However, he added: “Where it is based on payments of additional enhanced rebates, that is an inducement. That has got to be clearly disclosed, if not outlawed. It is not a model we support.”