The product range is planned for the end of the year and is designed in response to the FSA’s upcoming Retail Distribution Review.
To ensure the products are low cost, HSBC plans to use passive products such as index trackers and exchange-traded funds for asset allocation.
The funds are intended to help advisers offer products in line with the retail distribution review and drive down the end client’s costs.
“These funds are still on the drawing board at the moment,” a spokesperson for HSBC said. “Everything else is still unknown at this point in time.”
The aims of the RDR are to ensure consumers are offered a transparent and fair charging system for the advice they receive, are clear about the service they receive, and consumers obtain advice from “highly respected professionals”.
The result has been a number of firms, Schroders and JP Morgan Asset Management among them designing new products to explicitly comply with these new regulations.
