Cofunds is to offer a fee-based option for advisers which it believes will give them more flexibility in adapting to RDR demands.
The platform is introducing new cash products in the first half of 2008 which will allow it to offer a fee-based remuneration structure for advisers.
Cofunds says it is piloting the new cash products to a small number of advisers, and will launch to the wider market as soon as they are satisfied with the results.
Currently the platform allows only a commission based approach; either trail, initial or switching. However, by offering all options (fees, commission and execution only), Cofunds says advisers will be able to choose how they manage clients. This will be a key development in allowing advisory firms to adapt their business model to any new strategy they believe will be demanded by the RDR.
The platform will also enhance its core pension contract with Legal & General, it says, as well as launching a new L&G Dublin-based offshore insurance bond.
Charlie Eppinger, Cofunds chief executive, says the new initiatives are meant to enhance the services financial advisers can offer.
“Our aim is to offer advisers a comprehensive client management platform which will incorporate features of both what are currently called ‘fund supermarkets’ and ‘wrap platforms’,” he says.
“This will include a range of client services including a choice of fees and charges.
“We are also responding to specific IFAs, where they have an established relationship with Cofunds, by providing lighter levels of integration with our platform for three complementary specialist product options.”
The Selestia Investment Soultions and Fidelity FundsNetwork platforms support both a commission and fee-based approach.
Have your say:
"As far as Factory gate pricing goes in general No company is doing this yet.
Real Factory gate pricing means allowing customers to deal direct with say Cofunds or Fidelity and to pay no initial and no trail. At present all companies still require a client to deal through an adviser before reducing the annual charge."
- John Blackmore, Principal, Long View
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