advisers should anticipate a flurry

In the coming weeks advisers will receive notifications of fund groups’ new RDR-compliant share classes which could include new terms of business and should be thoroughly digested, according to JPMorgan Asset Management’s head of UK retail Mike Parsons.

advisers should anticipate a flurry


He said JPM Asset Management and many other asset managers are poised to inform clients officially of their new share class offerings and advisers should expect a ‘blizzard’ of notification letters.

“The important consideration for advisers to note is that the mailing we are sending out includes an amendment to our terms of business, which places the onus on advisers to identify the correct share class for the business they place for their clients.

“All other retail fund groups will be writing to advisers very soon informing them of their RDR share class terms and potentially amending their terms of business,” Parsons said.

He warned that with no industry standard for naming share classes, advisers will need to acquaint themselves with each group’s offering.
JPM itself has A, B and C share classes, but others have I, R, X and Z.

“I would urge all our clients from advisers to compliance officers to read how each fund group’s share classes will work,” Parsons concluded.



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