26th July 2011

Fidelity FundsNetwork extends account fee option

• Launches on 25 July 2011 in response to adviser demand
• Simple flat fee of £45 – fixed until June 2013 – gives freedom to buy and switch at no additional cost
• Adviser feedback – Cathedral Financial Management and CarterDawes IFA Solutions give their views

London, 19 July 2011:  Fidelity FundsNetwork™ has extended its Account Fee* option in response to adviser feedback.  From the 25^th July 2011 all advised clients will be able to opt into Account Fee pricing and take advantage of the benefits straight away.

Since launching the Account Fee in August 2010 to advised clients with over £50,000 on the platform, FundsNetwork has experienced consistently strong demand from advisers to extend the Account Fee option to their entire client base. The £45 Account Fee, which does not attract VAT, offers advisers and their clients further choice in how they do business on the platform; a charging structure that is easy to explain; fixed dealing costs each year; and the freedom to buy or switch without incurring any additional charges.

This new option is especially important for advisers who wish to use the platform to deliver more active investment propositions, since it can offer their clients substantial savings**. Any clients who prefer to remain on the existing Initial and Switch Charging pricing option can do so, with the option to opt-in to the Account Fee at anytime in the future. 

David White, Head of Fidelity FundsNetwork, comments: “Advisers have consistently told us how much they liked having a choice of pricing options for their clients on the platform, so we decided to extend the Account Fee option to all advised clients. Advisers now have the flexibility to choose which pricing option best suits their clients’ needs.

“This latest development from FundsNetwork is one of a series to be announced over the coming months as we reinforce our commitment to advisers to make it easier for them to manage their clients’ investments and business on the platform.“

Simon Carter of CarterDawes IFA Solutions Limited, comments: “For me, the ability to select on a client by client basis which Fidelity FundsNetwork pricing structure suits best is the perfect solution, and is very much in the client’s best interests.

“To have the choice as an adviser which suits each client is ideal, as we can discuss their requirements and determine which option best suits them. Every client is different, so every client will not fit the same charging structure. As an Independent Financial Adviser offering bespoke investment solutions, to have this choice is a way I can add value to my service.”

Tim Ames of Cathedral Financial Management Limited, comments: “We welcome the improved flexibility and choice that Fidelity FundsNetwork has introduced to meet the differing requirements of our clients."

FundsNetwork is providing a range of support material to help advisers maximise the benefits of Account Fee pricing for their clients. Please refer to fundsnetwork.co.uk or call BrokerLine on 0800 41 41 81.

*Account Fee pricing provides unlimited initial and switching charges waived for all clients through Fidelity FundsNetwork.  Bid offer spreads may still apply.  No initial charges on lump sum and Monthly Savings Plan investments submitted online.

**Example Scenarios for the Account Fee based on 6% growth provided by the Synaptic Comparator Platform Comparison Tool

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