The new structure will replace adviser commissions being deducted from initial and ongoing discretionary management charges.
The plan is that in future, IFAs will agree an initial and ongoing advisory fee structure with the client for providing advice on investment portfolios that are then outsourced to Whitechurch to manage. The advisory fee will be paid from the client’s cash account.
As part of the same restructure, Whitechurch will no longer receive renewal commission from any fund house with renewal commission reinvested if retail share classes are held. Gavin Haynes, Whitechurch’s managing director, confirmed that the intention is to institutional share classes to be held wherever possible.
The key driver is the Retail Distribution Review and Haynes’ aim is to move to a transparent charging structure where adviser fees are agreed between the IFA and the client where the clients’ investments are outsourced.
