Peter Mann, managing director of Skandia UK
Skandia has announced it will be offering unbundled share classes with unit rebates as it feels its customers would be disadvantaged by the rebate ban.
Last week, the Financial Conduct Authority announced it would be banning cash rebates from April 2014.
But Skandia feels 87 per cent of its customers would be disadvantaged by this ruling as they hold a pension or an Isa.
The new unbundled share classes with lower annual management charges will be available within the next three months.
Skandia has chosen to refer to them as unbundled rather than clean share classes as they will continue to have a rebate where possible. This will be passed back to the client in the form of additional units.
{desktop}{/desktop}{mobile}{/mobile}
The firm said this was the quickest solution to minimise the tax liability, maintained Skandia's net fund cost and did not hinder re-registration.
Peter Mann, UK managing director of Skandia, said: "Adding unbundled share classes with lower AMCs but still paying rebates where possible provides clients and advisers with a swift and positive solution to the new tax liability on rebates.
"Our data shows just how many clients hold Isas and pensions as part of their portfolio and other providers who choose not to develop their systems to administer unit rebates risk not acting in their clients' best interests."
• Want to receive a free weekly summary of the best news stories from our website? Just go to home page and submit your name and email address. If you are already logged in you will need to log out to see the e-newsletter sign up. You can then log in again.
