Barclays' wealth arm is in talks with the regulator about charging asset managers administration fees when their funds are recommended for private client portfolios.
Investment Week understands under the existing rules, Barclays currently receives around half the AMC on a fund recommended to its clients in the form of a rebate, with the remainder going to the fund group. The Retail Distribution Review (RDR) has outlawed commission to advisers and forced fund groups to launch commission-free ‘clean' share classes, which strip out payments for advice and platform fees. As a result, Barclays and other wealth managers will likely have to buy the clean fee share classes, and charge private clients an additional fee, rather than offsetting this by takin...
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