View more on these topics

Cofunds charging review could see price cuts


Cofunds is reviewing its platform’s pricing structure in a move that could see it lower its charges. 

The results of the review of both Cofunds’ functionality and pricing, which began when L&G acquired the platform in March, will be announced in the coming weeks. 

Cofunds chief executive Chris Last says: “I think people would be expecting us to look at the entire proposition of the business and price is certainly an element of that.”

Its current charging structure comprises a £40 annual charge and a sliding scale of annual management charges from 0.29 per cent to 0.15 per cent.

Standard Life is conducting a similar review of its platfrom pricing as part of the introduction of its unbundled charging structure by Q1 2014.

A Standard spokeswoman says: “The headline platform charges currently quoted do not take account of every aspect of our charging structure – in a large number of cases the client will be paying less than the amount quoted, particularly if the adviser holds significant assets with us.”

A number of platforms have announced price reductions this year. Transact announced in April it was reducing its charges by almost 15 per cent for an average portfolio of £180,000 in a wide-ranging shake up of its fee structure.

Nucleus announced in July it was cutting its platform charges for all clients with at least £500,000 of assets, with those holding between £1m and £2m seeing prices halved.

Investment Quorum chief executive Lee Robertson says: “The larger platforms have a bit of fat to play with and can lower prices. Smaller independent platforms will find it more difficult to reduce prices further and remain profitable.”


News and expert analysis straight to your inbox

Sign up


    Leave a comment