Axa is introducing two new tiers to its standard pricing structure for wrap platform Elevate which reduce the charges for accounts above £2.5m.
Previously, all accounts in excess of £1.5m were charged 0.3 per cent. Under the new structure, accounts between £1.5m and £2.5m will be charged 0.3 per cent, accounts between £2.5m and £5m will be priced at 0.22 per cent and all accounts above £5m will be charged 0.14 per cent.
Axa says it has made the changes in response to increasing demand from advisers placing business on behalf of high-net-worth clients.
Head of proposition Mark Wilson says the new pricing structure will make Elevate more competitive in the wrap market. He says: “The additional two pricing tiers will significantly improve the company’s competitive position for large cases. Elevate’s unique approach to pricing puts us in an enviable position to respond to market changes and will lead us on the road to becoming a market-leading platform proposition.”
Forty Two Wealth Management partner Alan Dick says: “Clearly, this will make Elevate more competitive because the price is better but the wrap market is not all about price. As advisers, we want wraps to be cheap but it is also about the service that is delivered to clients. Any wrap I recommend will be competitive but not necessarily the cheapest.”