In an adviser update Transact said that one of its rivals had concentrated its marketing on its reduced charges and compared itself unfairly to Transact.
Transact head of marketing Malcolm Murray later confirmed the provider the update referred to was Skandia.
He said he did not dispute that Skandia would work out cheaper, but argued that the comparison used by its sales people for an average case size of £50,000 sat “conveniently” below the level at which Transact’s discounts apply, amplifying the pricing difference.
He also said it was not fair that the comparison was based on the top ten funds which are different across both wraps, with one fund simply not available on Skandia.
Murray added: “Its comparison wrongly states that we suffer initial charges on two out of the ten funds whereas the charges to Transact are zero.”
“A like-for-like comparison would give a very different impression.”
But Skandia head of proposition marketing Peter Jordan says: “The comparison we made was a fair one because we had to pick an example of a case size and £50,000 is a level that many advisers would have to deal with regularly.
“If there are any errors over the initial charges then these are Transact’s mistakes as we simply used its own publicly available material on charging for the comparison.”