group to pay advisers 0.5% annually for ongoing client service on new lump sum investments
Fidelity International will now pay ongoing commission to advisers for new lump sum sterling share investments across its Sicav fund range.
Peter Hicks, head of IFA channel at Fidelity, said advisers would receive 0.5% annually for ongoing client service on new non- tax-wrapped investments on 27 Sicav funds registered in the UK.
He said: "These funds include some of our most popular offshore funds, such as the FF China Focus and FF India Focus funds as well as the 16 offshore funds recently given sterling share classes."
He said Fidelity already paid ongoing commission on new lump-sum investments into the company's UK-domiciled Oeic fund range and on all tax-wrapped products.
Advisers will also receive ongoing commission on new monthly savings plans in these funds as well as Fidelity's onshore range of funds.
Hicks added: "If advisers are offering comprehensive long-term financial advice, then they should be remunerated properly for the continual service they provide to their clients.
"Offshore funds are playing an increasing role in portfolio asset allocation with more advisers using offshore funds as part of their regular fund universes.
"With organisations such as the IMA announcing they will create sectors for offshore funds, in the near future, this trend looks set to grow. It is therefore right advisers should be given access to on-going commission on these products too."
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