FE Fundinfo is set to launch its distribution channel management services in the beginning of 2024, aimed at asset managers who will be reworking rebate, platform, and trailer fees.
The platform will fill a gap to “reduce administrative burden around distribution agreements and counterparty due diligence” for asset managers and was developed within a six-month pilot project. It will operate as a branch of the company’s Fund Information Hub.
In July of this year, the FCA released consumer duty regulations, looking to ensure that customers received fair value for products. The regulations resulted in over a third of advisers committing to change their fee structure by November while one in six fund shares classes had changed fees in the past year up to October.
Marina Corghenci, director of fee & distribution channel management at FE Fundinfo, said: “With the increasing regulations and complexity of distribution channels consisting of various counterparties and intermediaries, keeping track of agreements, calculating accurate rebate amounts, and ensuring compliance with the regulations has become challenging.
“The manual nature of the processes and disparate systems used for fee management further exacerbates the complexity, leading to inefficiencies, manual processes and operational errors.”
Throughout the pilot, FE Fundinfo worked with asset managers to identify the business requirements across different fund ranges and processes it would need in place. The service will operate as a customisable fee and distribution channel which hopes to create a simplified method for meeting the fee requirements.
Steffen Ahlers, director of fee and distribution channel management, said: “Our fee and distribution channel management service addresses these problems head-on. By eliminating manual work and providing a unified platform. Our service simplifies the process, saves time, reduces errors, and enhances overall efficiency for asset managers.
“We’d like to thank all those asset managers who took part in the pilot program as their insight and input has allowed us to ensure that the service that is going to be best in class for resolving inefficiencies related to fee management, distribution channel management and counterparty due diligence.”