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PIMS: Platforms say there is no demand for flat fees

Stratton-David-Axa-2013
David Stratton

Platforms say there has been no demand from advisers for flat fee-based charging models.

Speaking at PIMS on board the Aurora last week, Axa Elevate, Seven Investment Management and Standard Life 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 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 a 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.”

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.”

Currently, Alliance Trust Savings is the only mainstream adviser platform to charge a flat platform fee although clients also have the choice of a bundled structure.

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