AJ Bell has scrapped the establishment and annual administration charges for its Junior Sipps and the dealing charge for advisers using its bulk and model tool.
The removal of the Junior Sipp establishment fee will save investors £120 at the outset while a further £200 per year will be saved by not having to pay the quarterly administration charge for investments held in AJ Bell’s Funds and Shares service.
A Junior Sipp is a type of pension for a child which sees a parent or legal guardian manage the account until the child turns 18.
Billy Mackay, marketing director at AJ Bell Investcentre, said: "Research shows that the majority of young people would not consider using their parent’s financial adviser.
"This might be different if they are presented with a significant nest egg and saving for future generations at an early age is a great way to cement the importance of a financial adviser.
"With no establishment charge and no quarterly administration charges, the AJ Bell Investcentre Junior Sipp is very competitive and sits well alongside our Junior Isa and Lisa to give advisers choice of how best to plan for future generations."
The firm has also stopped charging the £1 dealing charge that clients previously incurred on all deals executed through its bulks and models tool and also applies to AJ Bell’s risk-targeted managed portfolio service (MPS).
The bulks and models tool enables advisers to place multiple trades at the same time to create and manage portfolios on behalf of their clients.
Mr Mackay added: "These changes have been made in direct response to feedback from financial advisers.
"Many of them now use centralised investment propositions and were telling us that whilst the charge for dealing via our bulks and models tool or for our MPS was small, it added another challenge in terms of how best to deal with disclosure.
"The removal of the £1 dealing charge is therefore a simple but important change that will be welcomed by many advisers and clients using the AJ Bell Investcentre platform."
Last year, AJ Bell reduced the annual management charge on its MPS from 0.25 per cent to 0.15 per cent.
Martin Bamford, chartered financial planner at Informed Choice, said: "Any reduction in charges is very welcome. As wrap platforms mature, charges should naturally reduce.
"Where technology is used, for example to process portfolio rebalancing and fund switches, arguably platforms should not be charging additional fees.
"Administration charges on investments for children are also an important element to cut, as we should all be working hard to encourage the next generation of investors."