Deloitte warns on 'prohibitive' cost of developing new share classes

clock

Fund managers looking to offer clean share classes could find it "cheaper" and "simpler" to adapt existing institutional share classes as opposed to developing new ones, Deloitte has suggested.

The recently confirmed ban on legacy commission post 2013, in addition to a likely ban on platform cash rebates, makes it imperative for fund managers to introduce RDR-compliant share classes with adviser commission and platform charges stripped out. But business advisory firm Deloitte has said the cost of developing new factory-gate share classes will be "prohibitive", citing the need to seed the new share classes, register the classes and publish a prospectus and key information documents.  "The costs could be prohibitive, particularly if repeated across a large number of retail fun...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

PA360: It is 'impossible' to pick out the best asset class every year

PA360: It is 'impossible' to pick out the best asset class every year

‘The outsourced route is one that a lot of advisers are now taking’

Hope Coumbe
clock 26 April 2024 • 2 min read
PA360: Framing of information to investors 'extremely pervasive'

PA360: Framing of information to investors 'extremely pervasive'

Consumer Duty states consumer biases must not be exploited

Jenna Brown
clock 25 April 2024 • 1 min read
Schroders chief executive Peter Harrison to retire in 2025

Schroders chief executive Peter Harrison to retire in 2025

Harrison began his career at Schroders as a graduate in 1988

Cristian Angeloni
clock 24 April 2024 • 2 min read