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Fidelity FundsNetwork has struck an exclusive deal with Barclays Stockbrokers to provide the bank with its core fund platform.
In a move that will see Barclays Stockbrokers compete with major fund supermarkets such as Hargreaves Lansdown, the partnership will provide the bank with a new and enhanced mutual fund offering for its clients through its existing Funds Market platform.
As part of this enhanced fund range, Barclays Stockbrokers’ platform will boost the number of funds available, from its current offering of 1,000 funds which can be traded online, to 2,000. This will then be expanded to 3,000 within the coming weeks.
The new development will also see a significant change to the Funds Market charging structure. The enhanced platform will have no initial charges on funds, no dealing commission, and for funds in a Barclays Stockbrokers account, there will be no account administration charge.
As well as this, Barclays Stockbrokers plans to offer a ‘loyalty bonus’ to clients, similar to that offered by Hargreaves Lansdown, which will see a level of the trail commission rebated, the extent to which depending on the nature of the underlying fund.
Rupert Dickinson, head of Barclays Stockbrokers, said: ‘It will be hugely competitive; especially when you add this to our existing leading position in share-trading.
‘We are absolutely determined to be market leader in this space. We are number one in the active trading space and we want to be number one in self-directed services through the UK. With this combination, we have a strong foundation.’
Dickinson said there have been three main drivers spurring these developments, including the move among clients to become more self-directed in their investments, as well as the provision of online services.
‘The retail distribution review will also drive more of that activity – more money will go into self-directed investor services,’ Dickinson said.
He added the firm has done research on its clients, who are looking for all investments in a single place, and a wide-range of funds to choose from, as well as the ability to use tools and market data to help their selection.
‘There will be a fair amount of change over the next 18 months. So we are delivering a wide range of services for investors holding funds, adding to our heritage of active trading,’ said Dickinson. ‘The world in the next 18 months will see a seismic amount of change.’
David White (pictured) head of FundsNetwork, added: ‘From our perspective, we are a technology enabler, extending our administration services to feed into Barclays Stockbrokers, including straight through processing and automation. This is an exclusive for Barclays.’
Comments (4)
Will the FSA insist on the various parties to this deal being open and honest about exactly how they are making money on this "hugely competitive" proposition or will we have to wait for 10 years before we, and consumers, find out it's not quite as "free" as it seems?
15:18 on 22 February 2012
Hmm.
So FNW clients, whether direct or through an IFA, pay an annual A/C admin fee, currently £45, but through Barclays, pay nothing?!
Time for IFAs to look again at FNW methinks, unless they're about to announce new terms without the fee?
I't s going to get VERY competitive out there!
We await news from FNW!
15:43 on 22 February 2012
As predicted when Barclays closed it's IFA division, because of the complaints fines and costs.
They will be providing a service that gives no advice to the clients = No complaints. Or as they call it "Self-Directed".
The net result is they get to skim a wee bit off every piece of business that their customers "self-direct" into Fidelity, without the cost of giving advice or the possibility of future FOS Complaints.
It was Al capone that said "It's easier to steal a dollar off a million people than to steal a million off one person."
15:43 on 22 February 2012
more choice for consumers, surely a good thing. High profile competition for HL, surely a good thing. The devil will be in the details and it will be interesting to see how much of the rebate that they will be retaining and how much they will pass back.
On a more important note, is the chap picutred Jason Donavan fallen on hard times?
16:32 on 22 February 2012
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