FundsNetwork to reveal fund manager rebates by month end

Fidelity FundsNetwork has laid down the gauntlet to rivals by pledging to disclose payments it receives from fund groups by the end of the month.

The platform will publish a list showing where customers' money goes for every one of the 1,200 funds it sells, according to a report in the Daily Mail.

In most cases an annual 1.5% charge paid by the customer will be split 50/50, with the fund manager getting 0.75% for managing the portfolio and FundsNetwork 0.75% for administering the investment.

If the FundsNetwork customer has another, separate financial adviser, then he or she will get 0.5% and FundsNetwork keeps a lesser 0.25%. In a minority of cases, where annual charges are significantly below or above 1.5%, this split will differ but will still be declared by FundsNetwork.

The move comes after the FSA said in last week's platform policy paper it would force platforms, including execution-only, to reveal their payments from providers by the end of next year.

It also said it wants to ban the payments altogether but is currently consulting with the industry again on the issue.

Pressure is now building on other platforms like Hargreaves Lansdown's Vantage to reveal fund manager deals. Hargreaves' shares slumped last week after analysts warned the FSA's proposals could mean a change to its business model. However, the firm played down the paper's impact and said its rivals would be under greater threat.