“Cutting the price is one of way making that commitment, but L&G needs to understand that price is not the only driver for advisers. Service is also important. I’m sure that removing the £40 fee will make it more competitive among its peers.”
Elsewhere, 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.
Change is afoot
The move by Cofunds to cut its £40 annual charge was dubbed by the platform as the ‘Legal & General effect’. It elaborated by saying this was the “first of a number of benefits” clients would see as a result of Cofunds being within the L&G fold.
This suggests Cofunds is keen to wrestle back a greater share of the adviser market after it has become, at least in industry opinion, more institutionally focused. The business has seen a lot of staff departures in recent months, with the latest set to be chief executive Chris Last who will retire at the end of the month. Mr Last had only been chief executive since L&G announced its takeover of Cofunds in March, however, had been at L&G since 1972.
A straw poll of advisers showed service needs to improve to attract business, meaning it is likely if Cofunds is going to battle for more of the adviser market, other detailed, functional developments are likely to follow this price cut.