Skandia to remove front-end margins on Selestia portfolio

Long-term benefits with removal of front-end margins

Skandia is axing its front-end margins on all investments administered via Selestia Investment Solutions from 15 September. While the group admits it will take an initial hit in terms of bottom line, head of platform marketing Peter Jordan said the increased flows of business it expected as a result of cutting the cost would benefit the business in the longer term. Initial charges and maximum commission levels vary by product wrapper, whether Isa, onshore bond or unwrapped funds, currently with initial client charges of 5%, with an average maximum commission rate of 4.2%, giving Skandia...