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Skandia reduces charges on Isa and Pep transfers

Skandia has cut charges for Isa and Pep transfers to its investment platform in a bid to remain competitive in the sup-ermarket fight for assets.

Skandia recently stopped offering re-registration for Isa and Pep transfers, saying it was unsustainably expensive but, as rivals Cofunds and FundsNetwork offer free re-registration to advisers, Skandia is aiming to make transfers to its platform more attractive.

From February 21, Isa and Pep transfers will cost 3.5 per cent down from 4.5 per cent although if the adviser rebates commission, the cost drops to 0.5 per cent. Skandia’s margin on these transfers effectively drops by two-thirds from 150 basis points to 50.

Re-registration is still available for investments held outside a tax wrapper to avoid IHT liabilities.

Investment marketing manager Ian Thomas says although re-registration is free on Cofunds and FundsNetwork, some fund groups, such as M&G, do not offer this facility and a transfer offers the IFA a good opportunity to review client portfolios.

Skandia offers free switching between funds but Cofunds and FundsNetwork charge up to 0.25 per cent.

Thomas says Skandia char-ges 4.5 per cent initial on all new business, whereas rivals’ rates vary dependent on the individual fund group.

Skandia is upgrading its website and will launch an online version of its CD-based Uselect risk-profiling and fund selection tool early in April.

Thomas says: “There is a lot of hype around re-registration but it is not sustainable business and all fund groups support cash transfers and there are industry standards for processing it.”


Framlington income fund soft closure

The Framlington equity income fund, managed by George Luckraft, is to soft-close from Friday 25th February 2005 by raising its initial charge to 5.25 per cent. The fund now holds 658m having grown from 157m at the end of 2003. Framlington says that there could be a risk to the funds performance should it continue […]

Old gold – Keith Popplewell

In my last article, I began to look at recent and imminent developments in the pension world. Over the next few weeks, I intend to discuss the implications for clients in all the areas undergoing change (see table below) and identify how knowledgeable financial advisers can add value to these clients.


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