Skandia says it does not expect to lose business as a result of the decision to cut trail commission on some funds following its merger with Selestia.
Head of platform marketing Peter Jordan says the decision was made to prevent legacy issues arising from the different trail rates paid on some funds by the two platforms.
He says: “We had to make the decision to migrate everyone on to the new platform as leaving some accounts on the old one would have been difficult to manage while we also had to consider the cost of integration.”
Jordan says the changes are bringing the platform fees in line with the market and adds that they will not start until January 2009.
He says: “The trail commission reflects the rebate on these property, fixed-interest and cash funds, which typically offer a lower AMC. It only means a drop from 0.5 to 0.43 per cent.”
But Warnes Anderton IFA Glenn Warnes says he would consider transferring off the platform except for potential tax implications.