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AJ Bell caps annual D2C fees at £200

AJ Bell’s direct to consumer platform Youinvest will be capped at £200 a year from January.

Investments in clean funds and structured products on Youinvest will be 20 basis points annually, with a £50 quarterly cap.

Dealing charges will go down from £9.95 to £4.95 per deal. The final fund rebates will be paid in February 2014.

The platform currently charges custody at £12.50 per quarter, dealing charges of £9.95 and commission is shared between platform and client.

By comparison, AJ Bell clients on its advised centre Sippcentre pay a quarterly admin of £45 for assets above £50,000 and custody charges of 20 bps.

Custody is tiered down to 5bps for clients with more than £2m.

Quarterly admin fees start at £25 for assets up to £25,000.

Platforum senior researcher Richard Bradley says: “There is a split opening up between those platforms with flat fees – such as Alliance Trust Savings and Interactive Investor – and those charging a percentage of assets such as TD Direct Investing, Charles Stanley and now AJ Bell Youinvest.

Hargreaves Lansdown will shortly be announcing its new pricing structure, which we doubt will be as low as 20bp, so we wait with bated breath to see if the deals it has negotiated with fund managers make up the difference.”

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