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Transact: Firms may start charging clients for switching to clean

Transact believes platforms or fund managers could start looking at charging clients to recoup the costs of converting them to clean share classes.

Speaking at the Personal Finance Society annual conference in Birmingham last week, Transact head of technical services Brian Radbone said while he was not against the idea of clean share classes, there are “pitfalls” to be wary of.

He said: “We have converted £3bn of the £15bn we have got on the platform already. If this volume carries on going up, is it going to cause the wheels to slow down, whether it is with the platform or whether it is with the fund manager.

“Will people be out of the market or will people start charging? We have not charged for doing it and I do not think we make any plans to, but all this extra activity that has come about because of the changes to the rebates has got to be looked at.”

Speaking to Money Marketing later, Radbone clarified that he thought the platform or the fund manager could look at charging the client a nominal amount per conversion.

He added that because there was so much work involved in converting to clean share classes, it may be that some firms choose to take time out of the market to get the work done.

Click here for all the news from the annual PFS conference



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