Standard Life Wrap is to move to a clean share class only model from the beginning of the 2014/15 tax year following HM Revenue & Customs announcement that platform rebates are to be taxed.
Standard says it is starting to add clean share classes to the platform this month and is currently in negotiations with fund managers over preferential share classes to reflect its scale in the market. It says it will also offer unit rebates it has negotiated within the new clean share classes as an interim measure.
Standard has previously shunned the addition of clean share classes, instead relying on the rebate terms it negotiates with fund managers.
HMRC announced last week that platform rebates are to be taxed forcing Standard and Skandia to consider changes to their business models.
Standard head of platform propositions David Tiller says: “While we maintain that rebates provided an efficient mechanism to allow us to pass on discounted terms, our main aim following the HMRC’s announcement last week has been the protection of customers’ interests.
“We want to provide advisers using our platforms with a simple proposition that still reflects the very competitive terms Standard Life has negotiated with fund groups.”
Money Marketing reported this week Kames Capital would not launch preferential share classes for individual platforms while other fund groups are considering their options.
Axa Elevate says it expects to have access to any new share classes launched by fund managers.
Axa Elevate managing director David Thompson says: “As and when fund managers make new enhanced clean share classes available we would expect to provide access to these through Elevate to ensure we continue to provide clients with the best possible value in the most simple and transparent way possible.”