Novia will no longer be using the FTSE indices as it will be subject to a fee for distributing data supplied to it by a data provider, which has already paid a licensing and distribution fee itself.
The platform has been informed that adviser firms using its service may also be subject to charges for use of the same indices, regardless of whether they are using tools such as fund charting or portfolio review.
Bill Vasileff, CEO of Novia commented: “It’s a pity, but we feel that the level of fees being charged is excessive. FTSE is obviously a strong brand, but there are other viable alternatives out there that we are able to use.”
Vanguard became the first big name to switch indices when it defected from the MSCI index in October last year.
Six of its funds, worth an aggregate $170bn, were moved to FTSE indices in January, while a further 16 with $367bn in AUM are now indexed using benchmarks developed by the University of Chicago’s Centre for Research in Securities Prices. The firm cited mounting costs as the reason behind the move.
