Cofunds enables the automatic sale of investments to cover adviser fees
Cofunds, the UK’s leading independent platform for financial planning, has improved its payment system to allow the automatic sale of units from a client’s investment funds.
From 7 February, clients who have previously agreed with their advisers to pay fees through their cash account, can decide to have units automatically sold from the investment funds they have selected, if there are insufficient funds in the account.
This development gives advisers the flexibility to arrange for the sale of units from the most appropriate investment, taking into account a client’s tax position. For clients linked to model portfolios, their mandate will automatically be set to maintain their model portfolio position – selling from over-weight funds first and then proportionally across the portfolio.
Verona Smith, Head of Proposition at Cofunds said: “This is just one of the changes we’re making in the run up to RDR to support adviser businesses.
The manual calculation and execution of trades to cover adviser fees was off-putting with many advisers not collecting their fees at all. As advisers prepare for RDR and the switch to fee based advice, this function will enable quick and efficient fee collection, allowing advisers more time to focus on ensuring their clients receive a quality service.”