Fidelity will unbundle the charges on its 15 multi-asset funds for investors through its FundsNetwork platform following the FCA’s move to ban cross-subsidy deals.
In April, the FCA said platforms should not use cross-subsidies to market themselves as free or appear to offer lower platform pricing for investors in their own funds.
Previously, Fidelity had waived the platform fee on Trevor Greetham’s Navigator multi-asset funds but will change this approach after the FCA’s move.
The Navigator funds’ annual management charge will be cut to 0.25 per cent or 0.5 per cent, depending on the individual product’s investment approach, and a 0.25 per cent platform fee will be implemented.
FundsNetwork head of sales Paul Richards says: “FundsNetwork Navigator has unbundled its pricing to reflect guidance issued by the regulator in April this year. The total cost of the solution remains the same, the only difference being that a service fee will be taken separately to the fund charge.”
Seven Investment Management is also adding a platform charge of 0.25 per cent to its own funds as a result of the FCA’s ban, while Axa Wealth is making changes to its Architas pricing on Axa Elevate.