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Cofunds charging review could see price cuts

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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.”

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