ABN Amro MeesPierson and Rabobank have both said they will return the so-called kickback distribution fees to their clients in The Netherlands. ABN Amro MeesPierson announced last week it is to change its pricing structure for asset management and, earlier this week, Rabobank (Rabo) followed suit. Today, however, it emerged that ING Bank has no plans to follow the example set by its competitors.
"This is a signal towards our clients that we take their request for more transparency seriously," said Frans van Lanschot, director of ABN Amro MeesPierson in an interview with Het Financieele Dagblad. "At the same time we want to be at the forefront of the latest market developments," he added. As of 1 April ABN Amro MeesPierson will redress distribution fees, known as kickbacks, to its clients. The bank has also announced it will increase its management charges so while clients won't be cheaper off, they will have a better understanding of the costs involved, said van Lanschot.
On Monday, Rabobank director Pim Mol told Fondsnieuws.nl that Rabobank wants to return the kickbacks from the second quarter of 2012 to its clients. Contrary to ABN Amro MeesPierson, Rabo will not increase its charges for its clients. "We give this discount to keep the structure as simple as possible," Mol said. He added that it should be made much more transparent which services a client is delivered and at what price, and that "the return of the kickback is a first step towards greater transparency."
Today, an ING spokesperson told Fondsnieuws.nl that although the bank is welcoming a simplified and transparent cost structure and a flat rate without separate transaction fees, it has no plans to return distribution fees to its clients in the short term. "Distribution fees are a source of revenue which enables us to keep our rates low," the spokesperson explained. The bank said it is keeping a close eye on the discussions on the subject currently taking place in Europe, as well as at a national level, but prefers to reach the desired final stage in one move, instead of taking a few steps in between.
Insinger de Beaufort, Van Lanschot Bankiers and Theodoor Gilissen Bankiers have already introduced an all-in fee for their asset management clients.
By returning the distribution fees, ABN Amro MeesPierson and Rabobank are ahead of the ban on so-called kickback commission payments for fund management, advice and execution-only products. Dutch Minister of Finance Jan Kees De Jager previously announced the ban which will be implemented in 2013