Platform News: FSA confirm ban on platform rebates

jem16

dunstonh wrote: »

In the UK there is. I believe it is £250k per fund if direct but none if via platform. In the US there is no indication of any minimum (apart from the extra charge on $10k investments (per fund).

I had a look at Vanguard USA. Most funds seem to have a minimum of $3k with some at $10k and some if held in an education account at $2k.

koru

dunstonh wrote: »

Theoretically they could do that. However, there is no indication they are when you look at the clean classes already being issued.

I thought that the recent FSA document said that some fund houses had specifically expressed a preference to retain the current level of AMC and to give unit rebates? The fact that some fund houses have already issued clean classes does not mean that there are no fund houses that would prefer not to do so.

dunstonh

I thought that the recent FSA document said that some fund houses had specifically expressed a preference to retain the current level of AMC and to give unit rebates?

It costs millions to issue new share classes. So, coming up with a cheaper option is not surprising. However, some have already bitten that bullet. Remember that platforms and fund houses all have their own agendas. Unbundled platforms were all in favour of unbundling. Bundled platforms were not.