Transact cuts platform fees

Transact cuts platform fees

Adviser platform Transact has announced a reduction in its fees.

Under the new pricing structure, single or consolidated portfolios of less than £60,000 will pay 0.5 per cent, while those with between £60,000 and £100,000 will pay 0.29 per cent.

According to a spokesman for Transact, this represents a 30 per cent reduction in cost for portfolios of £100,000.

Portfolios of more than £100,000 to £600,000 are charged at 0.29 per cent, and above that level, up to £1.2m, are charged at 0.19 per cent.

Portfolios of between £1.2m and £1.5m are charged at 0.07 per cent, and the remainder above that level is charged at 0.05 per cent.

The changes apply the same annual commission charge to both cash and investment holdings, and according to

Transact 75 per cent of customers will pay less, with no customer paying more.

Jonathan Gunby, chief development officer at Transact, said: “We have removed the differentiation between the charges for investment and cash making price cuts in line with our responsible pricing approach. 

"Successive price cuts have had a positive impact on our net flows and profitability while providing benefits to both advisers and their clients.

"Our funds under direction are now around £29bn and we are again passing on savings derived from our scale and specialisation in the platform market."

Abraham Okusanya, founder of consultancy firm Finalytic, said the reduction in charges shows the benefit of economies of scale for the industry.

This is the second fee cut undertaken by Transact in 2017, with the platform having previously cut fees in March.