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Advisers: Most new assets will be in clean funds in 12 months

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Axa Elevate managing director David Thompson

Two thirds of advisers expect the majority of new platform business to go into clean share classes over the next 12 months, according to research from Axa Elevate.

From a sample of 300 advisers, 52 per cent say they expect more than 75 per cent of new business inflows to be placed in clean share classes.

A further 20 per cent say they expect over half of new business inflows to be invested in clean funds.

Axa Elevate managing director David Thompson says: “Together with the introduction of the RDR, HMRC’s decision to tax fund manager rebates and the FCA’s platform paper rules, these factors have all contributed to the rapid adoption of clean share classes during the first half of 2013.” 

The FCA’s April platform policy statement confirmed the banning of cash rebates, while unit rebates are allowed to continue although with a 20 per cent tax charge if they are paid from unwrapped investments.

The regulator’s policy statement also ruled all legacy payments between fund managers and platforms will be banned from April 2016.

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