Royal London has defended moving its Ascentric platform to an “all-in” pricing structure earlier this year, saying the decision has paid off with a spike in Sipp accounts.
In May, Ascentric moved to a single account charge, ditching trading fees and charges for Sipp and drawdown administration.
However, portfolios under £1m are now charged at 0.3 per cent, higher than the 0.25 per cent previously charged.
Assets of between £1m and £3m remain charged at 0.1 per cent. While discounts were negotiated on assets above this under the previous structure, Ascentric now charges 0.06 per cent on assets between £3m and £5m.
In its half-year accounts this morning, Royal London said the change had made it “easier for advisers and their clients to understand total costs”.
It added: “Since the new pricing structure was introduced in May, Ascentric has seen a significant increase in Sipp accounts set up on the platform.”
Gross inflows for the first half of the year were £1.4bn, up from £1bn for the first six months of 2016.
Assets under administration are up 9 per cent from their level in December, rising to £13.4bn.