Fee-based channel will result in pricing issues

Professional Adviser
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proposals could create an Initial and trail commission-free Oeic share class

The creation of a fee-based 'independent' channel will create a pricing issue for unit trust companies and could lead to the emergence of an initial and trail commission-free Oeic share class. Should depolarisation rules go through, 'independent' advisers would not be barred from taking trail commission as part of a defined payment system. However, if a client does not want to pay trail, it would have to be rebated, a time-consuming and costly process. Alan Burton, Standard Life Investment's chief executive, said there is currently no flexibility to charge different annual management fe...

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