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PIMS: Platforms say there is no demand for flat fees

Platforms say a flat fee-based charging model will not become the most popular way for wraps to be remunerated.

Speaking at PIMS onboard the Aurora today, Axa Elevate, Seven Investment Management and Standard Life all said they do not think flat fees will become more popular than percentage charges.

Axa Elevate head of distribution David Stratton said they have seen no demand for flat fees from advisers.

He said: “It will be interesting to see how things evolve but flat fees are not something we are hearing lots of requests for at the moment.”

Standard Life head of platform propositions David Tiller said the flat fee model hits lower value clients hardest.

He said: “The problem with flat fees is that those with smaller amounts to invest get hit hardest. It is something which only really works when you have got very high net worth clients.”

Seven Investment Management chief executive Tom Sheridan said: “When you have got an industry with 30 platforms everyone has to differentiate themselves so you will see lots of different forms of charges rather than one becoming more popular.”



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There are 2 comments at the moment, we would love to hear your opinion too.

  1. If that’s true, can I be the first to register an interest in flat fees? And good on alliance trust for bringing the model to market!

  2. about as likely as turkeys voting for christmas –

    thanks Axa and SL for stating the bleeding obvious

    Why on earth would distributors want to let customers know pounds shillings and pence figures? the anchor is the 1% figure which seems much more reasonable

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