Head of communications Mark Polson says FundZone will continue to operate in tandem with the Standard Life wrap, arguing that they serve different audiences.
Polson says: “The FundZone platform suits smaller investors, whereas the wrap is aimed at larger, more sophisticated investors.”
But he says changes need to be made to the charging structure of FundZone to align it with the retail distribution review.
He adds: “Wraps generally are much more in tune with what the RDR is trying to get at as they have no commission built in compared with a fundsupermarket where commission is built in.
“For us, as the RDR stands at the moment, FundZone will have to change its model.”
But Threesixty partner Phil Young questions why Standard Life plans to continue running two different platform models. He says:
Consolidating the FundZone platform on to the wrap would make perfect sense, so much so that I have no idea why they launched it separately in the first place.”
Fidelity International head of UK retail sales Peter Hicks says: “I think we will need to make some changes. It might result in some change to the pricing model.”