Fidelity abandons multi-asset/platform deal after FCA ban

Fidelity is to cut the annual management charge on its range of 15 multi-asset funds for advisers investing through its FundsNetwork platform, after the Financial Conduct Authority banned a cross-subsidy deal.

The firm previously waived the platform fee on the Navigator funds range, run by Trevor Greetham (pictured), but put the deal under review following the FCA's platform paper. In April the regulator said product costs "should not be used to cross-subsidise the platform charge. "If a platform service provider is also a fund manager, we would not expect the platform to be labelled as ‘free' if the consumer invests in funds operated by that manager." The new agreement will see AMCs on the funds lowered to 25bps or 50bps depending on the investment approach, with a platform fee of 25bps...