View more on these topics

Skandia reveals unbundled platform details

Skandia has revealed the details of its unbundled charging structure which will see the platform operate a tiered charging structure ranging from 0.5 per cent to 0.15 per cent.

Investors with assets worth up to £25,000 will be charged 0.5 per cent, between £25,001 and £100,000 0.35 per cent, between £100,001 and £500,000 0.3 per cent, between £500,001 and £1m 0.25 per cent and over £1m 0.15 per cent.

kandia charging

There will be no account fee and the minimum charge on holdings will be £8.30 per month.

Investors will receive unit rebates through the structure. Skandia says discussions with fund managers are ongoing.

There will be no wrapper charge or charges for the platform tools or transactional activities such as switching and rebalancing.

Skandia UK chief executive Peter Mann says: “I am pleased to announce a price structure which is simple, competitive and customer focused. There is a lot of focus on price within the industry but for advisers and customers I think sustainability and user experience are equally important. 

“We have priced our platform of the future at a point where we will be able to support advisers and customers for the long term as well as continuing to lead the way in the development of the platform market.”

The structure will launch in December.

Cofunds revealed its unbundled charging structure last year made up of a £40 annual charge and a sliding scale of annual management charges from 0.29 per cent to 0.15 per cent.

Cofunds investors with assets worth up to £100,000 will be charged 0.29 per cent, between £100,001 and £250,000 they will be charged 0.26 per cent, between £250,001 and £500,000 they will be charged 0.23 per cent, between £500,001 and £1m the charge will be 0.2 per cent and over £1m the charge will be 0.15 per cent.

Fidelity’s unbundled charging structure is made up of a flat rate charge of 0.25 per cent alongside a £45 annual account fee.

There will be no switching charges for Fidelity customers who decide to adopt the £45 account fee, which is optional until next January, but switching charges will apply for those who do not.

The Platforum managing director Holly Mackay says: “For me, the elephant in the room here is the fund manager element of the story. If Skandia can flex its enormous muscle and negotiate additional rebates from fund managers, it has confirmed that it will pass these back in unit form to the end client and not retain these as additional revenue.

“Even in a world of assumed 75bps clean share classes, we think this will be chipped away by larger platforms. We also think that the small and medium size managers could take the pricing fight to the big boys and be real agents of change.”


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm