Schroders is set to join the onslaught against IFAs rebating trail commission this summer with a new issue of its terms and conditions.
The company is changing its admin system in June and is using the opportunity to draw up new terms and conditions, which will be sent to IFAs in May.
Schroders' current terms do not allow it to stop IFAs from returning trail to their clients but it says that for several months it has been unhappy with brokers that operate such a practice.
Earlier this month, Fidelity wrote to Chartwell and Com mshare saying it would stop them selling its products if they rebated trail commission.
Schroders director of cli ents services Robin Stoakley says: “In some cases, clients are actively encouraged to go back to the unit trust groups if they have an issue. We pay trail commission to prevent this. We want to get the flexibility in place to stop clients rebating trail commission.”
l Schroders, Invesco, ABN Amro and M&G are pooling resources for the end of Isa season rush. Each year, the UK's biggest fund managers set up individual stalls around the country to cater for lastminute applications.
But this year, four of the major managers are joinsing forces to make life easier for IFAs and cut costs.
There will be more than 10 venues, including Belfast, Edinburgh, Guildford and London.