M&G warns super clean share class costs to hit fund groups

Plans to allow platforms to negotiate individual terms with fund groups could cost the industry millions of pounds, asset management giant M&G has warned.

A number of platforms, including Standard Life, have announced negotiations with fund groups to launch preferential ‘super-clean' share classes are at advanced stages. However, some of the largest fund groups are understood to be unwilling to launch the share classes, arguing the high costs and complexity of doing so, as well as the possibility of a squeeze on margins, make it untenable. Speaking at a Tax Incentivised Savings Association (Tisa) event on the impact of the FCA's recent platform paper, M&G operational development manager Julian Webb said launching a single new share clas...