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Alliance Trust Savings launches new pricing model

Gary Mcluckie Alliance Trust Savings ATS

Alliance Trust Savings is launching a new flat-fee pricing model on its platform to run alongside its current unbundled structure.

The new model will launch this month with annual charges ranging from £100 for a stocks and shares Isa and £250 for a Sipp with all switching and dealing charges removed.

The new flat fee is equal to 40bps for investments of £75,000, 30bps for investments of £100,000, 20bps for £150,000 and 12 bps for £250,000. All fund rebates are passed back to the client in full.

ATS currently operates an unbundled charging structure which charges a £10 quarterly administration fee for stocks and shares Isas and investment dealing accounts and a £135 annual fee on Sipps. It also applies a £12.50 dealing charge across all investments.

Alliance Trust Savings marketing director Garry Mcluckie (pictured) says: “The new all-inclusive fee may be more appropriate for clients who are more likely to invest or switch more frequently. The key is that advisers now have real choice over platform charges and are no longer tied to high bps-based platform fees.”

The Lang Cat principal Mark Polson says: “I think this is a smart move and is a good option for advisers with clients who will be switching often. Alliance Trust is a long way ahead of the other platforms in terms of pricing and could force downward pressure on the market if it can get the traction.”

Alliance Trust currently has around £3.64bn assets under administration.

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Comments

There are 10 comments at the moment, we would love to hear your opinion too.

  1. Well has Alliance’s PR got that bad? Two google searches and Mcluckie and Polson worked together at Standard Life. You scratch my back and I’ll stroke yours. We’re not stupid in IFA land

  2. How low has this PR stunt gone?
    Two google searches show Polson and Mcluckie worked together at StandardLife. Perhaps when asked for comment others said ‘who?’ A case of you scratch my back…. They will be asking Garrett Cox how great she thinks she is next! We are not stupid in IFA land Mr Unlucky

  3. The article is very unclear. How does £100 or £250 a year (or indeed both combined) equal 30bps on £100,000?

  4. Surely this model will attract high traders which means alliance will lose money! Or are there other ‘hidden’ charges not mentioned above.

  5. Agree it would seem a panic to get cash in upfront to shore up the losses

  6. Mark P, the lang cat 6th October 2012 at 10:18 am

    This got me too – then I remembered their fees are plus VAT. So 30bps will be £250 + VAT on £100k – £300. Simples. But not all that clear in the piece.

  7. My goodness, a charging structure where the price you pay increases according to the value of the assets on platform…. Now why didn’t I think of that! Genius.

    I wonder how many additional charges apply on top of the “flat fee”. Few others in the industry can do it that cheaply. Suppose they can always hike the fees in a years time….

  8. So they are following the lib dems and want to penalise wealth!

    Again, still not seen the details so not convinced this model is workable, without ‘Hidden’ charges.
    They already charge for withdrawals online so perhaps they will hike those fees to cover costs.

    More details are needed before like for like comparisons can be made.

  9. Just got their adviser newsletter – they have a ‘fair trading policy’ that limits trades to 20pa
    So not much use to regular investors with a 4/5 fund portfolio…….
    As always the devil is in the detail.

    They claim its what advisers want BUT the article above does not say its for advised clients only.
    More ino still required.

  10. I can’t find the details on their adviser centre website? Is this offer real?

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