View more on these topics

IFAs challenge Skandia move to impose fees

Industry figures have questioned whether Skandia should apply maximum fees to its post-RDR adviser-charging structure.

Last week, Skandia started taking advance applications to convert clients to adviser-charging through its platform, Skandia Investment Solutions.

Clients are being asked to give authorisation for Skandia to pay their agreed fee to their adviser from January 2013.

The new structure will allow monetary or percentage charges via initial, regular, switch and ad hoc fees. It will impose Skandia’s current capped limits of 4.5 per cent for initial fees, 3 per cent for switching fees and 1.5 per cent for ongoing charges.

Investment Quorum chief executive Lee Robertson says: “I do not think it is for platforms or providers to set maximum limits on charges after the RDR. This should be down to advisers to decide with their clients.”

The Lang Cat principal Mark Polson says: “It feels a bit disrespectful to set maximum limits where it should really be down to the adviser to decide what they charge. Maybe a more sensible thing to do would be to monitor the adviser fees on the platform rather than having specific caps for advisers.”

A Skandia spokesman says: “The limits on charges via our platform are nothing new. They have been in place for years, are well known by advisers that use our platform and are in line with TCF considerations. It is important to note the average charges taken via our platform are significantly lower than the limits in place.”

Skandia will be the last of the traditional fund supermarket platforms to reveal their unbundled charging structure. It is due to be announced in the fourth quarter.


Insynergy to close funds and target off-market investment

Insynergy Investment Management – the boutique fund manager launched with backing from ex-Dragons’ Den panellist James Caan – is proposing to close its funds as part of a “repositioning” of the business. Investor approval will be sought to return money held in the absolute India, absolute China and New World equity income funds. Investors in […]

HMRC staff back industrial action

Staff at HMRC have backed industrial action over budget cuts at the department, with the Public and Commercial Services Union claiming reductions in funding are undermining its ability to collect taxes. In a ballot of union members at HMRC, 52.8 per cent backed a strike while 77.2 per cent voted for other forms of industrial […]

David Finlay takes temporary charge of Barclays’ direct channel

Barclays intermediary channel director David Finlay has assumed responsibility for the bank’s direct mortgage channel on an interim basis. Finlay was given the role following managing director of regulated customer advice Philip Northey’s decision to leave the bank last month. Finlay will run the bank’s branch and telephony channels alongside his current role until the […]


Almost nine in 10 employers admit failings with post-DRA compliance

The default retirement age (DRA) was abolished more than three years ago, yet new research from Jelf Employee Benefits suggests that the vast majority of employers still have some way to go to fully understand, comply and communicate the landmark legislation change that prevents older employees being forcibly retired on the grounds of age alone.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm