Cofunds ramps up platform price war as it drops annual fee

Platform giant Cofunds has dropped its annual £40 fixed platform charge for advisers who use unbundled share classes.

The company said the move was the “first of a number” of benefits clients would see now it was fully owned by Legal & General.

The platform’s monthly investment-based platform charge, which rewards consolidation of assets on the platform, remained unchanged and would continue to be taken at the same rate.

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The rate is calculated based on a client’s total investments on the platform, but only applied to their investments in commission-free share class funds.

Cofunds launched its unbundled structure, which it calls the explicit pricing model, in September 2012, as part of its programme of preparing advisers for the RDR.

The platform said the unbundled model was supported by 2,600 clean share classes and at the end of last month had more than £5bn invested with inflows of roughly £400m per month.