David Thompson, managing director of Elevate
Over 40 per cent of flows on the Elevate platform during March 2013 went into clean share classes, according to AXA Wealth.
This was evenly divided between new money to the platform and switches of existing money from rebate-paying share classes.
In response to this demand from advisers, AXA Wealth Elevate now offers over 1,600 clean share classes and plans to add another 1,000 in the summer.
David Thompson, managing director of Elevate, said: "The level of interest we have witnessed in clean share classes suggests that advisers are increasingly embracing this option for their clients.
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"With the introduction of the RDR, the latest news from HMRC that rebates are to be taxed, ahead of the expected platform paper, sounds the death knell for fund rebates."
Mr Thompson said he expected use of clean share classes to increase "dramatically" following HMRC's announcement.
He said: "It is too early to tell the exact impact the taxation on rebates will have on advisers. However, we expect the popularity of clean share classes to increase dramatically as a result of the announcement, with advisers looking to invest with confidence that new money will not be subject to tax."
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