Fidelity has started paying trail commission on new lump sums invested in its unwrapped funds, but the money will not be payable if switched from another Fidelity product.
Until now, trail has only been paid on tax-wrapped investments on the majority of Fidelity's funds but as of 1 November, annual commission of 0.5%, increasing to 1% on its Portfolio fund, is payable on most of the group's UK-domiciled portfolios.
But, if a client currently invested in a Fidelity fund switches a lump sum into a trail paying product, the intermediary will not benefit.
The group's more recent launches, MultiManager Growth, MultiManager Income, the three WealthBuilder Target funds and Sterling Bond already pay trail and advisers will continue to receive payments following a switch out of these, unless they move into a fund that pays 0% trail.
The only vehicles not paying ongoing commission are the group's Cash fund and MoneyBuilder Cash Isa. In that case, the adviser would receive no ongoing payments and, if the client subsequently switches back into a trail paying vehicle, the switched assets will continue to be ineligible for such commission.
Trail will be paid on lump sum top-ups made into existing holdings, though only on the units purchased by the top-up.
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