The fund supermarket war hotted up this week with latest entrant
Consolidated Funds warning IFAs they must choose between the company or
Consolidated has told IFAs it will be impossible to sign up to both
companies because they will experience operational difficulties.
It says signing up to Fidelity means they risk missing out on Consolidated funds.
Consolidated Funds chief executive Sam Jensen says IFAs who have signed
statements of intent to go with Fidelity should consider their position
carefully as it will be difficult to change their minds later.
Competition between Fidelity and the new fund supermarket, which has
Jupiter, Gartmore, M&G and Threadneedle as founder members, is set to be
fierce as Jensen claims Consolidated Funds will “thwart” Fidelity and will
be the best.
But four major investment IFAs, Hargreaves Lansdown, Chase de Vere
Investments, Torquil Clark and Best Investments, which signed letters of
intent to work with Fidelity, say they intend to go ahead with the deal.
Jensen says: “Independent advisers should think through the operational
consequen-ces of signing up with two supermarkets.
“They should not make a decision to sign up with Fidelity yet as they will
get tied into the deal and find it very difficult to go back on their
decision. We have a big selling point over Fidelity as we will only deal
with IFAs and not directly with consumers. We will be the best.”
Following recent meet-ings with EMX chief executive Caroline Lee, Jensen
says Consolidated Funds has decided not to sign up with Autif's portal yet
although it may in the future. Jensen says it does not make commercial
sense for Consolidated Funds to sign up at this stage as EMX has only just
started to roll out.