The changes, which will come into effect in February 2014, are designed to give advisers and their clients a clearer view of what they pay. These changes – combined with the bulk conversion to clean share classes and the payment of rebate tax liability – address legacy bundled charges.
Ringing the changes
The new banded wrap charging structure will reduce charges for SIPP and bond investments. The group said that clients with £200,000 or more invested in funds on the platform could see a reduction of up to 16% in charges.
Around two-thirds of assets on the platform will also qualify for new adviser discounts to SIPP and bond charges. These discounts will be applied according to the size of the adviser business, the efficiency of their operating model and their long-term growth potential.
Standard Life aims to give favourable terms to those firms that have adapted to the post-RDR environment and those buying in bulk. For example, a client with less than £100,000 to invest would pay 0.55% on the standard terms. This would reduce to 0.45% under ‘core terms’ – typically adviser firms with £20m or more in wrap assets.
Stability assured
David Tiller, Standard Life head of platform propositions, said: "It is important that platforms are run on a sensible commercial basis and we have modelled our new pricing to ensure it is proportionate and sustainable.
"I am determined that we cannot jeopardise the stability of our platform or run the risk of letting advisers and their clients down in the future for short term tactical advantages. We remain committed to delivering a straightforward reliable platform that’s easy to deal with and here for the long haul."
The charges for ISAs and unwrapped mutual funds are largely unchanged.