Standard Life raises Elevate prices for new clients

French insurance giant Axa announced its plan to sell Elevate to Standard Life in May and last month Standard Life completed its acquisition of the platform

It revealed shortly afterwards that it planned to keep Elevate as a standalone platform.

Today (14 December) it announced that from March next year, charges for new clients using the Elevate platform will increase by 0.04 per cent on average.

Standard Life said this fresh charging structure for new customers will help ensure Elevate’s business model is “commercially sustainable” as a standalone platform.

This increase in charges will also contribute to the company investment plans, which are focused on delivering the developments requested by advisers in recent research by Standard Life.

 It was important for us to reassure advisers as soon as possible Steve Owen

For existing customers, however, the group confirmed charges on the platform will not change, and could even be cut due to the growing range of discounted fund deals.

Existing customers will also be free to move to the new charging structure if it is beneficial for them to do so.

Steve Owen, Elevate’s head of proposition, said: “It was important for us to reassure advisers as soon as possible, by removing uncertainty around pricing and supporting their client conversations. 

“Advisers now know their existing clients will not see an increase, and the platform has clear focus and ambition, with a fair pricing model to support this."

The number of charging tiers on the Elevate platform has reduced from seven to four to try to give advisers and their clients a clearer view of what they have to pay.

In November, Standard Life launched a consultation with advisers to try to ensure Elevate develops in a way that will support their businesses.

David Tiller, Standard Life’s head of adviser and wealth manager propositions, said: “Platform provision is a long-term business so we have ensured the new charging structure is both competitive and sustainable.

“In making this change, we are also making a commitment to Elevate advisers to deliver the developments they want for their clients.”

Mr Tiller said it is right that advisers should demand that their platform provider offers the most competitive price possible.

But he argued it is “equally important” advisers feel confident in the commitment of their provider and the stability of the service provided.

Patrick Connolly, certified financial planner at Chase de Vere, said: "There is intense competition in the platform space and this will no doubt lead to further consolidation and a reduction in the number of providers." 

To be sustainable, he said providers need to get the right combination of sufficient assets, appropriate and competitive charges, and a good level of service.

Mr Connolly added: "It is sensible that Standard Life has been reviewing this mix in relation to the Elevate business."

Alan Solomons, director of Alpha Investments and Financial Planning, said he wouldn’t be put off by the slight increase in charges, adding: “It’s not just price, it’s what you get for that price.”

He also said it was interesting that Standard Life seem to be going against the trend of lowering prices.

“But from a commercial point of view, it’s important for the platform to be financially viable both for the owners and for advisers," Mr Solomons said, adding: "I'm sure it's very expensive to run a platform."

“What you don’t want to find is a situation where they have lowered charges so much that the platform has to pull the plug."