Seven Investment Management (7IM) has enhanced its platform pricing structure following the Financial Conduct Authority’s (FCA) proposed ban on fund groups cross subsidising their platform propositions.
In its April platform paper, FCA stated that effective 6 April 2014 fund groups could not cross subsidise their platforms by offering them at a discount when advisers bought their funds.
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7IM was caught out by the ban as it had waived its platform fee on its own funds. The company will now charge 25 basis points (bps) as a platform fee for investments in its 7IM funds.
It will also create a new share class for 7IM funds bought through its platform with an annual management charge 25bps lower than the current institutional share class.
The new share class will not be transferable meaning any transfers off the 7IM platform will require a share class conversion.
Tom Sheridan, CEO of 7IM, said: "We think that this structure allows us to ensure that neither the client nor the planner nor 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."
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By GlobalData
