Zurich has cut platform charges for its largest portfolios.
The charges for portfolios up to £100,000 remain the same at 0.35 per cent, while those between £250,000 and £500,000 will see the annual charge fall from 0.27 per cent to 0.25 per cent.
Portfolios of more than £500,000 will see fees fall to 0.10 per cent. Previously portfolios of more than £1m were charged at 0.22 per cent but Zurich has cut the threshold for its highest tier and more than halved the charge.
The new pricing takes effect from 1 January 2018 and Zurich said they mean clients holding more than £300,000 on the platform will see the cost of investing fall.
Alistair Wilson, Zurich’s head of retail platform strategy, said the move is aimed at driving greater value for consumers at or nearing retirement.
He said: "We are using our growing scale to cut prices for customers and ensure our platform remains sustainable and competitive for the long-term.
"With annuities in decline, consumers are increasingly consolidating their defined contribution pots as they look for a single and more easily manageable income. This trend is likely to continue as more affluent baby boomers move into retirement.
"We are significantly lowering our platform fees for higher investments to ensure we are well-placed to meet this demand and drive greater value for consumers."
This price cut follows hot on the heels of Transact, which cut its platform charges earlier this month.
david.thorpe@ft.com
