Adviser platform Novia will cut its charges from the beginning of next year.
From January 1, 2023 a typical client of Novia will see rates reduced from 0.50 per cent to 0.30 per cent for firms with more than £10mn of assets on the platform.
Then from July 2023, clients will have charges reduced from 0.50 per cent to 0.35 per cent for firms with under £10mn of assets on the platform.
The new charges, which will be applied to new and existing clients, are as follows:
For firms above £10m AuA on the Novia platform
(Effective from 1 January, 2023)
For firms with up to £10m AuA on the Novia platform
(Effective from 1 July, 2023)
£0 - £250k
£250k - £500k
£500k - £750k
£750k - £1mn
A client with a £150,000 portfolio currently pays annual platform charge of £750 but under the new terms will pay £450 in cases where the adviser firm holds more than £10mn of AUA on the Novia platform.
This charge will be £525 for those firms holding up to £10mn of AUA.
The minimum fee is to be increased from £75 to £100 from January 2023 and will only apply to clients with small portfolios paying less than £8.33 per month.
This is the first pricing change since the platform’s launch in 2008 with the company claiming it showed chief executive Patrick Mill’s drive to focus on value for money.
Mill said: “We’ve been preparing the ground to position Novia for what we believe is a third era for platforms, differentiating on true digitisation and deeper connectivity. Running alongside our investment in technology and work on microservices, has been a review of pricing strategy focusing on value and transparency.”
He added: “We’ve always taken a sustainable and responsible approach to price which means we aim to strike the right balance between offering great value for money for customers while continuing to invest in our technology, our service, and our people to help create efficiencies within adviser businesses.
“I’m pleased to say that we’re now in a position to share the benefit of our increased scale by reducing our standard platform charge and simplifying our charging model.”
In August, Novia added drip feed pension drawdown to its platform as part of its latest series of service enhancements.
This means clients can take tax-free cash of up to 25 per cent and designate the remainder to drawdown.
Mill took the helm in May 2021 following the platform’s acquisition by private equity firm AnaCap in December 2020.
A series of executives under the previous boss and founder, Bill Vasilieff, have since left the business.