Cofunds finalises legacy 'disturbance' rules

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Cofunds has begun writing to the 400,000 advised clients on the platform, explaining its finalised 'disturbance' rules on legacy assets.

Under the Retail Distribution Review (RDR) rules, advisers will be able to continue earning commission on advised business set up before the December 2012 deadline, so long as that business remains ‘undisturbed'. Once assets are disturbed, commission will cease. Disturbances include investment top-ups or regular increases to funds, and updating a model portfolio to a new asset allocation. Investments not subject to the rules include selling investments, saving arrangements where the amount is decreased or not changed, or conversions between accumulation and income share classes. Co...

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