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AJ Bell caps D2C pricing at £200

Firm says pricing not designed to undercut rival platforms.

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, formerly known as Sippdeal, will be charged at 20 basis points, with a £50 quarterly cap, while investments in a Sipp wrapper will incur a £25 custody fee for assets over £25,000.

Dealing charges will be £4.95 per deal. The final fund rebates will be paid in February 2014.

The D2C platform currently custody charges of £12.50 per quarter and dealing charges of £9.95, with commission shared between the platform and the client.

By comparison, the AJ Bell advised platform Sippcentre charges tiered custody fees starting at 20 bps for assets up to £1m, reducing down on a sliding scale to    5bps for assets above £2m. There is also a quarterly admin of £45 for assets above £50,000.

AJ Bell says it has no plans to reprice the adviser platform but says there is better functionality on the advised platform.

Marketing director Billy Mackay says the pricing of the D2C platform is not designed to undercut rivals. He says: ““We always price in our own way and we typically build products that are priced at the competitive end of the market.”

Pilot Financial Planning director Ian Thomas says: “It feels like a strange decision to me and seems like AJ Bell has undercut the advised platform. I would like to see it bring the advised charges in line.”

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