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.