Relaunched platform aims to shake-up pricing

Relaunched platform aims to shake-up pricing

Challenger investment platform Hubwise has overhauled its charging structure with the aim of make it easier for clients to understand. 

From Saturday 1 July the platform fee of 20 basis points will be capped at £40 per product per month, with no additional charges above client assets of £240,000.

It will also replace trade execution fees for UK-listed investments with a £1 settlement fee.

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Hubwise pointed to the present model favoured by other platforms, which sees a headline charge calculated on the value of assets under administration, swings of up to 30 basis points and widely differing monetary levels at which lower prices are applied.

Such intricacies not only makes life hard for IFAs but also for comparison tools, according to the firm, which can struggle to adapt to new or upgraded platforms.

Angus Macdonald, CEO of Hubwise, said: “We have a vision of charging for work done, applying fair and transparent pricing across the board, which will promote financial inclusion for all. Our revised pricing is the first step towards that vision.”

Changing the pricing structure is just part of the operation’s long-term goals, as it intends to tackle service as well.

Mr Macdonald added: “The most common phrase we hear is, ‘while price is important, we need a service that is reliable and easy to use.’ 

“With a team dedicated to service excellence, software with unrivalled levels of straight through processing and automation that dramatically reduces the administrative burden faced by users of the Hubwise solution, there are numerous benefits both for the users and their clients.” 

Hubwise has been operating since November 2011, but relaunched in May this year.

This week it announced it has signed a five year deal with adviser network Tenet, which will see Tenet provide two white-labelled Hubwise platforms for advisers, one which offers access to Sinfonia Asset Management funds and a restricted version which will allow access to Tenet’s restricted proposition. 

Adrian Murphy, managing director of Murphy Wealth, said: “Platforms are quite some distance from where we would like them to be in terms of pricing and usability, but they are in a better place than they once were. 

“The problem centres on legacy technology, and of course trying to introduce new technology and innovations while maintaining a platform existing clients can use.

"With more new players entering the market, and current platforms working hard to resolve these issues, things should get better, although the ideal platform is probably some way off.”