The exclusivity agreement that kept Fidelity off Cofunds and the four Cofunds shareholders off Funds...
The exclusivity agreement that kept Fidelity off Cofunds and the four Cofunds shareholders off FundsNetwork has ended.
From mid-December, intermediaries will be able to buy Jupiter, Gartmore, M&G and Threadneedle funds through FundsNetwork and Fidelity funds via the Cofunds platform.
The removal of the exclusivity agreement effectively means competition between the two platforms now centres on online tools and service rather than the range of funds available.
This also removes the competitive advantage enjoyed by platforms such as Skandia and Selestia, which already offer funds from all five fund groups.
Richard Wastcoat, managing director of Fidelity, said the agreement was the product of negotiations with Cofunds chief executive, Clive Boothman, started in spring.
Wastcoat said: 'We are certainly competing, but we both felt we were giving an unnecessary competitive advantage to Skandia and others, which was not helping intermediaries, Cofunds or Fidelity.'
Boothman acknowledged the level playing field argument but played down suggestions the two would slug it out for the sole business of intermediaries.
'Managed separation update'
The chairman discusses his surprise holiday job
Three months on
Regulator has stepped in