7IM applies platform charge to own funds

Seven Investment Management is adding a platform charge of 25 basis points to its own funds.

The firm says concerns raised in the Financial Conduct Authority’s April platform paper were the catalyst for the move. 

In the paper, the regulator 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.

7IM says the new platform charge will be applied to its own funds from April 2014, alongside the incoming platform rules.

The firm is also set to launch a new 25bps share class for its own funds which will be exclusive to the 7IM platform. The 7IM funds are available at 50bps to other platforms.

7IM chief executive Tom Sheridan says: “We think this structure allows us to ensure that neither the client, nor the planner, nor the adviser is in any way disadvantaged, that there is no question of any platform user subsidising investors in 7IM funds and that we can continue to provide a highly cost-effective investment service for the market.”

Last month, 7IM revealed it had dropped the charges it applies on funds being re-registered off the platform.