Terry Smith, the City veteran and founder of low cost fund management group Fundsmith, has attacked platforms in the UK for adding to the overall cost of investing in funds.
Smith - who has launched his own equity fund which is listed on Skandia's platform - said fees on funds in the UK were being inflated by pressure from platforms.
He said: "Fund management fees are too high in the UK. One of the reasons is the advent of fund platforms.
"The platforms get their revenue from trail fees paid from a proportion of the funds' management fees. They therefore have a vested interest in management fees remaining high enough to pay their trail fees."
Smith said the need to pay trail fees to platforms meant fund managers had to charge enough to cover their own costs and profit margins, plus the trail fees to the platforms, keeping costs high.
He said: "The platforms are adding to costs not reducing them."
Smith has launched a number of attacks since launching his low cost firm. He has already been involved in a public row with ETF providers after claiming the vehicles were the next mis-selling scandal waiting to happen.
An ambitious objective
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'Illusion of control'
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Total investment reaches £9m