UK-based financial services provider Hargreaves Lansdown has informed fund groups that it will charge for corporate actions and pricing errors that were earlier covered by commission.
Starting 1 March 2014, the company will charge up to £10,000 each time it carries out work on behalf of a fund manager, reported fundweb.co.uk.
The company, in its lettet to fund groups, said that events involving substantial mass contacting and mailing will cost up to £10,000, whille any data sent in Hargreaves’ Investment Times magazine will cost £5,000, reported the news source.
Simple events like administrative fund changes and fund objective communications will cost £500 plus £6.75 per affected client, while correction of pricing errors will be charged at £2,500 plus £6.75 per affected client.
Hargreaves, which currently handles corporate actions and dealing error corrections, is also considering disposing management information to fund managers.
The company in a statement said, "This activity costs time and money to complete, and saves fund management companies considerable sums through lower third party administration fees when dealing with Hargreaves Lansdown’s pooled client trades and unit registrations."