Friday, 05 April 2013 10:52
Skandia to offer clean share classes and unit rebates
Skandia has announced it will offer clean share classes and unit rebates on its platform.
This will complement the firm's existing fund range and be available across all products on the unbundled platform.
Annual management charges will be around 0.75 per cent for a standard equity fund.
It is also discussing with fund groups the possibility of offering preferential 'superclean' share classes.
The changes follow HM Revenue and Customs decision in March to tax rebates from asset managers to investors from 6 April.
Skandia said it had taken the action to provide a "swift and positive solution" for advisers and clients but did not rule out a future move to preferential share classes.
{desktop}{/desktop}{mobile}{/mobile}
The firm said: "It will continue to work with its fund group partners to ensure that its customers always receive the best terms currently available. This could be a combination of existing clean share classes with rebates or new preferentially priced versions that offer a lower AMC.
"Moving to clean share classes that already exist in the market and paying a rebate is expected to be the more immediate solution but does not preclude moving to preferentially priced share classes when available."
Peter Mann, UK managing director at Skandia, said: "Whilst new share classes with lower AMCs specific to our platform are an option, it has become evident that the quickest way to negate the effect of tax on rebates for our customers is to move to clean share classes that are already available and to continue to pay a unit rebate to customers, albeit at a lower level."
• 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.
This will complement the firm's existing fund range and be available across all products on the unbundled platform.
Annual management charges will be around 0.75 per cent for a standard equity fund.
It is also discussing with fund groups the possibility of offering preferential 'superclean' share classes.
The changes follow HM Revenue and Customs decision in March to tax rebates from asset managers to investors from 6 April.
Skandia said it had taken the action to provide a "swift and positive solution" for advisers and clients but did not rule out a future move to preferential share classes.
{desktop}{/desktop}{mobile}{/mobile}
The firm said: "It will continue to work with its fund group partners to ensure that its customers always receive the best terms currently available. This could be a combination of existing clean share classes with rebates or new preferentially priced versions that offer a lower AMC.
"Moving to clean share classes that already exist in the market and paying a rebate is expected to be the more immediate solution but does not preclude moving to preferentially priced share classes when available."
Peter Mann, UK managing director at Skandia, said: "Whilst new share classes with lower AMCs specific to our platform are an option, it has become evident that the quickest way to negate the effect of tax on rebates for our customers is to move to clean share classes that are already available and to continue to pay a unit rebate to customers, albeit at a lower level."
• 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.
This page is available to subscribers. Click here to sign in or get access.