Platform Interactive Investor has scrapped exit fees as it attempts to lure customers into transferring to it with a new cashback offer.
The direct-to-consumer platform, which recently acquired its flat-fee peer in the advised space Alliance Trust Savings, will help customers with the exit costs incurred when switching over to it based on the value of their portfolio with other providers.
New or existing customers transferring between £25,000 and £100,000 from another provider will be given £100 towards fielding exit costs, increasing to £250 for portfolios of up to £250,000, £500 for those up to £1m, and £2,000 for transfers above that value.
The offer will run until the end of the year for new trading, Isa or Sipp accounts only, and the holdings must be tradeable on II to count towards the thresholds.
II says the FCA’s recent platform market study, which found that over a quarter of consumers were put off moving providers by exit charges, reinforced its position to scrap the fees.
II chief executive Richard Wilson says: “We have made our position clear with the FCA, during its recent platform review, that while competition should be free it should also be fair, and the only effective solution to remedy today’s shoddy practices is to ban exit fees altogether. Talk is cheap, so we hope today’s announcement signals our commitment to stand behind our position.”
Interactive Investor paid £40m for ATS last month, having also merged with D2C rival TD Direct last year.