Standard Life has cut the charges for its Sipp and investment bond products help in the Wrap platform following pressure from advisers.
The changes mean investors with £200,000 or more invested in a self-invested personal pension held on the platform would see a fall in charges of up to 16 per cent. More than half of the assets on Standard Life’s Wrap are held in Sipps and investment bonds.
The group is also planning to give additional discounts to adviser firms with more than £20m invested on the Standard Life platform. It said adviser firms which are “focussed on sustainable business growth in a post-RDR environment” could secure discounts of 10 basis points.
In addition larger Isa or investment account customers will see some reductions in charges.
Head of platform propositions David Tiller said the move was part of the company’s aim to simplify its charging structure.
“The existing model was unwieldy and difficult to explain,” Mr Tiller said. “By harmonising charges and removing bundling we are eliminating complexity for advisers and allowing straightforward calculation and comparison.
“The simplified structure will benefit both new and existing customers - advisers using our platform will see all clients being treated consistently.
“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.”
Independent consultancy firm The Lang Cat ranked Standard Life’s Sipp as one of the most expensive for portfolios of £200,000, estimating a real cost to investors of £1,200 a year. A 16 per cent reduction would bring this fee down to roughly £1,000.
The full figures:
| Value band | Isa, personal portfolio and Wrap cash | Sipps/bonds standard terms | Sipps/bonds terms for larger advisers |
| £0 - £99,999.99 | 0.4% | 0.55% | 0.45% |
| £100,000 - £249,999.99 | 0.35% | 0.5% | 0.4% |
| £250,000 - £499,999.99 | 0.3% | 0.45% | 0.35% |
| £500,000 - £749,999.99 | 0.25% | 0.4% | 0.3% |
| £750,000 - £999,999.99 | 0.15% | 0.3% | 0.2% |
| £1,000,000+ | 0.1% | 0.25% | 0.15% |
