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Platform exit charge calculator launched

Directory service Compare The Platform has launched a new tool to calculate exit charges across the market.

The calculator will be updated in real time to given an indication of exit costs, but also incentives to switch, for example where platforms offer to pay for part or all of the costs of leaving an adviser’s previous provider.

Advisers choose their current supplier and add details on their wrappers and portfolios, and are then presented with charges and a list of platforms that offer the same investments with current transfer incentives.

The FCA is currently reviewing potential barriers to switching in its platform market study, which Money Marketing understands will be published next month.

Are platforms cut out for decumulation?

Compare The Platform, part of Fundscape, was launched in 2016.

Fundscape chief executive Bella Caridade-Ferreira says: “Platform exit charges can vary widely. Some make no charge at all and they should be commended. But some do levy some kind of charge. It could be for the whole portfolio, by wrapper or even a fee for each underlying investment. It pays to check how much a switch is going to cost you.

“As well as calculating the exit fees, the calculator also lists any active transfer incentives with an example of typical annual administration charges.

“We help investors make well-informed choices by equipping them with the
tools to make easy, accurate and dynamic comparisons.”

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Comments

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

  1. Bella Caridade-Ferreira: “Platform exit charges can vary widely. Some make no charge at all and they should be commended.”

    This is simply naïve. There are costs, the question is how they are passed on to clients – explicitly or implicitly. Why would you commend a company that does the latter, effectively hiding them?

    There’s a good chance the ‘no exit fee’ firms are bundling them elsewhere, for example, in the custody fee. In that instance the clients who stay loyal are paying for those that don’t. Still, it looks good…

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