Seven Investment Management (7IM) will introduce a platform fee for its funds by April 2014, in anticipation of a Financial Conduct Authority (FCA) ban on cross subsidies.
Currently, 7IM do not charge a platform fee when 7IM funds are purchased on the platform.
The FCA's platform paper determined that this pricing structure amounts to a cross subsidy and will subsequently be banned from 6 April 2014.
In response, 7IM has agreed that a platform fee of 25bps for investments in 7IM funds will be introduced before 6 April 2014.
Additionally, a new share class will be created for 7IM funds purchased via the platform. The annual management charge for this share class will be 25bps lower than the current institutional share class.
7IM chief executive Tom Sheridan said: "We think that this structure allows us to ensure that neither the client nor the planner nor adviser is in any way disadvantaged, that there is no question of any platform user subsidising investors in 7IM funds and that we can continue to provide a highly cost effective investment service for the market."
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