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Gartmore proposes client-level charging

Gartmore head of UK retail Richard Pursglove says that offering agent-based accounts with consumers rather than advisers may be a solution to the latest retail distribution review proposals for ongoing charging.

Pursglove says most asset managers currently operate an agent-based account for charging with advisers given that all their clients have similar if not identical terms.

However, he says that with a broader church of charging structures set to be introduced between IFAs and their clients, it may mean that moving the system down to the consumer level is a possible solution to tackle the charging process for each individual.

Pursglove says that a move of this sort would fit with the shift from an adviser-agreed model to a consumer-agreed model but warns that it would not be an easy process to put into place.

He says: “It would add an extra layer of complexity as more staff would probably be needed to deal with the administration and it is also likely to increase the number of errors.

“We will continue to liaise with the Investment Management Association and with the regulator to look through other potential solutions to the problem.”

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