Transact rings in another round of fee cuts

Transact has added fuel to the fire of the post-RDR price war with its eighth annual charge reduction in seven years.

Transact rings in another round of fee cuts

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The changes see alterations made on both the charging threshold for portfolios and standard annual commission as the platform surpasses £19bn in assets.

Effective from 1 November, the 0.5% annual commission levied on the first £60,000 of investments in portfolios valued at less than £180,000 will now appertain to portfolios of £150,000.

Transact said the change means that more clients will pay lower fees on their investments, with a typical portfolio valued at £150,000 paying £105 less each year – a 17% reduction on the previous charging guidelines.

Furthermore, with the sunset clause deadline due next year, Transact is also revamping its annual commission structure.

Coming into effect on 1 April 2016, the adjustment sees the 0.325% annual commission rate decreased to 0.31%.

Ian Taylor, Transact CEO, said: “We are pleased to be reducing our charges further in line with our principles of ‘responsible pricing’. Funds under direction now exceed £19bn and we are again passing on savings derived from our scale and specialisation in the wrap market.”

Once both sets of changes have been applied to the Transact wrap range, client fees will be structured as follows:

Single or Consolidated Portfolio(s) up to £150k

 

Investments

Cash

£0 – £60,000

0.5%

0.45%

>£60,000 – £150,000

0.31%

0.29%

Single or Consolidated Portfolio(s) over £150k

 

Investments

Cash

£0 – £600,000

0.31%

0.29%

>£600,000- £,120,000

0.2%

0.18%

On the remainder

0.075%

0.0675%

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