FundsNetwork strips pension charges

Fundsnetwork has removed all additional costs from its pension, meaning clients will now pay only the 0.25 per cent platform service fee and a flat £45 investor fee.

The company added in a statement that the investor fee is only payable on the pension if a client does not already pay it on any Isa or collectives they have with the platform in a sole named account.

Costs which have been removed include a £100 capped drawdown charge, a £300 flexible drawdown charge, a £250 overseas charge, a £150 pension sharing order charge and a £75 transfer or exit charge.

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Last week (6 February) HM Revenue and Customs confirmed it is in talks with the industry over how it will apply VAT to self-invested personal pensions.

Paul Richards, head of sales at FundsNetwork, said: “Our decision to remove all additional charges with immediate effect means that whether clients are in the accumulation phase or the decumulation phase and whether or not their circumstances change, they will only pay the standard, flat rate, fees.

“We have simplified what was already a very straightforward pricing structure and made it easier for advisers to compare pension products available via platforms.”

Aviva also recently announced changes to its pricing scheme when it launched a new tier in its pricing structure for investors with more than £400,000, in a grab for high-value pension clients with larger accumulated pots.