Gavin Oldham, chief executive of The Share Centre, explains the benefits to investors and how this will be achieved.
We fully support the FSA’s drive for greater transparency and fairness in investor charges and we will therefore take action well in front of potential regulatory change.
It is our intention that starting from the end of May, as and when new ‘clean classes’ of funds – lower charges and no commission payments to introducers – become available, to convert our customers’ holdings automatically to these more beneficial funds on the next ex-dividend date.
We have chosen this route to avoid creating potential capital gains tax liability for our customers which could otherwise be incurred by switching and we will not charge for this service. If customers wish to switch into ‘clean class’ funds earlier than the ex-dividend date, they may do so although we cannot advise on any tax outcomes and normal dealing charges will apply.
Our account charges are currently under review, but this will not affect our decision to convert customers into funds with lower charges and no trail commission as soon as is practical and in an efficient manner.
We’re determined to implement this policy ahead of the FSA’s potential rule change and before we need to, in order to deliver an early benefit to our customers.
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