Skandia will not pay initial charges to fund managers on its Selestia platform from 1 January.
Paid by some platforms to asset managers when investors purchase funds, Skandia says it will remove the charges as they "compromise customer outcomes".
Skandia believes the impact of fund manager initial charges are often unclear to clients and eliminating the fee will aid a clear, simple and competitive pricing structure.
"The sheer scale of our global fund holdings means that we are able to negotiate dealing terms with fund managers that few rivals can match and with 0% front-end margin combined with a 0% switching charge our platform is the cleanest and most cost effective proposition in the market," Skandia proposition marketing head Peter Jordan says.
"It is clear that larger platforms must also benefit from economies of scale but appear reluctant to pass on these cost efficiencies on to clients in the form of more competitive charging structures."IFAonline
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