FundsNetwork unveils Adviser Ongoing Fee service

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Fidelity FundsNetwork has launched a new fee service to help advisers meet RDR proposals, allowing IFAs to agree an ongoing charge over an entire client portfolio, rather than commission on individual products.

The new Adviser Ongoing Fee (AOF) service is designed to bring greater clarity and transparency to charges, with advisers and clients able to agree an ongoing fee as a percentage of assets to cover selected products or the whole portfolio - except for the Investment Bond. Under client instruction, the AOF will be offset against the natural trail commission of a client's fund holdings. Should the fee exceed the ongoing commission amount, units from a nominated fund will be redeemed to make up the difference. Should the fund not be able to cover the payment, or a fund has not been chosen,...

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