Cofunds has amended its payment system to allow the automatic sale of units from a client's investment funds.
From 7 February, clients who have previously agreed with advisers to pay fees through their cash account can opt to have units automatically sold from the investment funds they have selected if there are insufficient funds in the account.
"The manual calculation and execution of trades to cover adviser fees was off-putting with many advisers not collecting their fees at all," says head of proposition Verona Smith.
"As advisers prepare for RDR and the switch to fee-based advice, this function will enable quick and efficient fee collection, allowing advisers more time to focus on ensuring their clients receive a quality service."
Cofunds says the development gives advisers the flexibility to arrange the sale of units from the most appropriate investment, taking into account a client's tax position.
For clients linked to model portfolios, their mandate will automatically be set to maintain their model portfolio position.
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