View more on these topics

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.”

Recommended

4

Aviva signs exclusive protection deal with Lighthouse Financial Advice

Aviva has signed an exclusive three-year deal with the Lighthouse Group to provide protection products through its national adviser division, Lighthouse Financial Advice. The agreement, which will begin on 3 June, covers the sale of Aviva’s core protection products including life insurance, critical illness cover and income protection. Lighthouse Group chief executive Malcolm Streatfield says: “LFA […]

MM takes four top media awards

Money Marketing won financial B2B title of the year at last week’s prestigious Headlinemoney Awards, the fifth time in a row it has won the accolade. The judges said Money Marketing is “a publication with gravitas that really has an edge on its rivals”. One judge added: “Finance professionals are busy people and with time at a […]

Tony Mudd: When it pays to give

Much has been written of the FA 2002 schedule 1A amendments to IHTA 1984, which the readers will be well aware is the legislation introducing the new 36 per cent rate of inheritance tax. This rate can apply where 10 per cent or more of the deceased’s estate is left to a charity in respect […]

Friends Life corporate sales hit as rivals slash auto-enrolment prices

Resolution chief executive Andy Briggs says Friends Life’s corporate business suffered during 2012 as rivals slashed prices to “unprofitable” levels in order to win automatic enrolment business. Last week Resolution, the parent company of Friends Life, reported an 18 per cent drop in UK sales in the first quarter, from £173m last year to £142m […]

Global income: preparing for a rate rise…

In the five years since we launched the Artemis Global Income Fund, its manager Jacob de Tusch-Lec has built a distinctive portfolio that is first among its peers. Here he explains why his “quality, cyclical and value yield” stocks, and flexible approach, leave the fund better placed to benefit from uncertainty than funds that depend […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

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

Leave a comment