Standard Life warns of price rises on funds which do not unbundle

Standard Life has warned clients using its Wrap and Fundzone platforms they face a hike in fees if they stay invested in a small range of funds which are not planning to offer clean share classes.

The platform has identified a range of funds sold via its platforms - equivalent to around 1% of AUM - which are opting not to launch clean share classes, and which it will therefore not be converting for users as part of its bulk switch to clean share classes. Standard Life warned the cost of remaining in such funds would rise significantly when rebates cease to be paid on the funds in the new year. It said: "From 28 December 2013, rebates on bundled funds will no longer be paid on Fundzone. On Wrap, rebates on bundled funds will be reduced to a maximum of 0.40% from 28 December 2013...