M&G has written to advisers to confirm it will not facilitate the payment of adviser charging as part of its RDR strategy.
In August, M&G launched a new clean fee R share class in preparation for the RDR with a lower annual management charge of 1 per cent. It is clean of trail commission, but is inclusive of platform rebates and has been designed for retail intermediated business.
After the RDR’s implementation on 1 January 2013, new advised business received by M&G directly from an intermediary will go into the new R share classes.
In the letter, seen by Money Marketing, M&G says all intermediaries will be placed under the “adviser” banner. Any advisers or intermediaries wishing to recognised as execution-only will need to confirm their status to the asset manager.
It is expected that most asset managers will follow suit in deciding against facilitating adviser charging, with adviser remuneration arranged through the platform or direct from the client.
Last week, the FSA wrote to product providers and platforms outlining concerns about the way adviser charging arrangements are disclosed to clients.
The letter, which has not been made public, suggests some firms have not put in place appropriate processes to ensure existing remuneration arrangements, including fees, have been disclosed to clients.