Fidelity has decided to introduce a platform fee and cut the annual management charge on its range of 15 multi-asset funds for advisors investing through its FundsNetwork platform after the Financial Conduct Authority (FCA) banned a cross-subsidy deal.
The firm has previously waived the platform fee on the navigator funds range, run by Trevor Greetham, but put the deal under review following the FCA’s platform paper.
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In April this year, 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.
According to the new agreement, the navigator funds annual management charge will be cut to 0.25% or 0.5%, depending on the individual product’s investment approach, and a 0.25% platform fee will be implemented.
Paul Richards, head of sales at FundsNetwork, said: "FundsNetwork navigator has unbundled its pricing to reflect guidance issued by the regulator in April 2013. 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."
The navigator range includes Greetham’s £607 million Multi-Asset Growth fund, the £698 million Multi-Asset Strategic fund, and the £868 million Wealthbuilder fund run by Richard Skelt.
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