Interactive Investor -- new charging model?

Voyager2002 · 4 January 2018 at 2:02PM

As a former TD Direct customer, before the merger they sent me an email suggesting that their fixed fees would replace the commission they would normally receive from Mutual Fund charges. The implication was that the OCF that I would face would be lower than that shown on the fund information: this is important to me since one of my favourite Mutuals has an OCF in excess of 2% p.a. However, all attempts to get anything specific out of II have failed, so...

Has anyone here got any firm information about how the OCF of holding mutual funds will change under the new charging model?

ColdIron · 4 January 2018 at 2:38PM

I am unfamiliar with II but this sounds like a reference to 'dirty' classes available before 2014. Commission is now not allowed post RDR unless you already held units in that class. The OCF is charged by the fund managers not the platform so unless you still hold those dirty classes, to do what you expect would require II to negotiate a super clean class with all fund houses which is unlikely

ivormonee · 4 January 2018 at 8:40PM

Voyager2002 wrote: »

As a former TD Direct customer, before the merger they sent me an email suggesting that their fixed fees would replace the commission they would normally receive from Mutual Fund charges.

Could you post the email or the relevant part of it?

Interactive Investor -- new charging model?

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