Zurich has reduced platform fees following the radical changes announced in the Budget to Isas and pensions.
Zurich is set to decrease the number of charging tiers on the platform from five to four and will lower its starting charge from 0.45 per cent to 0.35 per cent per annum. The reductions will come into effect for new and existing customers from 14 July.
A customer with less than £50,000 invested will benefit from a reduction of almost a quarter of their ongoing platform cost, Zurich said.
The provider claims every investor will experience a price reduction, regardless of the size of their investment, as a result of the change.
The provider is also set to waive the annual fee that applies to retirement accounts for the remainder of 2014, with the aim of helping advisers as they look to consolidate pension assets onto platform ahead of April 2015.
Zurich said that additionally it is already seeing encouraging take up of the New Isa allowance, with advised customers taking advantage of the new £15,000 ceiling.
Reduced platform fees have been made by the provider following adviser research commissioned by Zurich, which reported that 73 per cent of 300 adviser firms expect an increase in Isa savings over the next five years.
This is compared to just 27 per cent who envisage a similar increase in pensions savings.
The majority of respondents also believe that the changes would have a positive impact on consumer attitudes towards long terms savings for their future, the provider’s research showed.
Alistair Wilson, head of retail platform strategy said: “It is important when applying a price reduction that all our customers benefit. We are delighted to be able to offer a straightforward pricing structure to them and we would echo the calls from the adviser community for simplicity on costs.
“This announcement is a further example of our commitment to offering simple and easy-to-understand solutions that help make doing business with Zurich easier.
“The removal of the retirement account fee will make a big difference to advisers as they look to consolidate pension assets onto platform ahead of April 2015. As a result of these changes, there is no price differential between our tax wrappers, even where the client is crystallising benefits”.
