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Skandia and Fidelity reject call for clean class

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Skandia and Fidelity have both ruled out following Cofunds’ lead in asking fund managers for a clean share class, with Fidelity claiming the move could reduce the range of funds available to advisers.

Last week, Cofunds announced that as part of its new unbundled pricing model, it is requesting a clean share class from fund managers.

But Skandia and Fidelity, both poised to adopt their own unbundled pricing structures next year, have ruled out a similar move.

Fidelity head of commercial Ed Dymott says: “Having a clean share class could be detrimental to advisers because unless all fund managers agree to it, the range of funds available will reduce. Not having a clean share class gives people freedom of choice.”

Fidelity is set to release the details of its unbundled pricing model in the first quarter of next year, while Skandia says it will launch its service in the second half of the year.

Skandia chief executive Peter Mann says the firm believes the customer will get a better deal through its unit rebate structure.

He says: “Delivering transparency is one element, and unbundling will achieve that for customers who want it, but the most important factor is the total cost to consumers. We believe the rebate mechanism is in the best interests of customers because it enables us to negotiate fund management costs on their behalf and we intend to pass rebates in full to the customer.”

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