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.
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.”