Standard Life cuts Elevate platform fees

Technology-Tech-Currency-Money-700x450.jpgStandard Life will reduce fees for its Elevate platform clients.

While the new pricing will be available to new clients from April 1, the existing clients will have to wait before the end of the year to benefit from the pricing changes.

The step comes as the providers are facing pressures to decrease their charges.

Last years’ research from Altus Consulting found the average operating cost of a platform was 28bps. The research also found more than half of platforms service their client book for less than 25bps  – a 40 per cent increase from 12 months previously.

Last year the consolidator AFH scrapped the fees for its clients.

Platform price pressure: will advisers start to absorb the costs?

Elevate pricing for new clients effective from 1st April*:

Portfolio Value New charge Current charge
£0-£149,999 0.30% 0.36%
£150,000-£749,999 0.25% 0.36%
£750,000-£999,999 0.25% 0.33%
£1,000,000-£1,499,999 0.20% 0.30%
£1,500,000-£2,499,999 0.20% 0.25%
£2,500,000-£4,999,999 0.15% 0.25%
£5,000,000+ 0.10% 0.25%

*Charges are not guaranteed; they are regularly reviewed and may be changed in the future

Source: Standard Life

Standard Life acquired AXA’s Elevate platform in fall 2016 for £31m. The company’s annual results from that year showed the firm expected £100m acquisition cost. Standard Life UK and Europe chief executive Paul Matthews told Money Marketing at the time the firm expects Elevate to be “profitable in the next couple of years.”

The company said the Elevate is now “profitable and sustainable business” in a press statement from today.

As at 30 June 2018, £56bn of assets was invested across the SLA platforms.

Crunching the numbers on Elevate’s repricing

Standard Life’s head of UK propositions David Tiller says: “There is more to come, as we continue to invest in our platforms to support advisers to deliver for their clients today and in the future. I look forward to delivering a Wrap update later in the year.”

Elevate Platform head of proposition Steve Owen says: “The pricing review marks a milestone in Elevate’s journey.

“The efficiencies we have realised, combined with great adviser support, have given us a sustainable platform that can flourish over the long term. It feels right that we can pass on the benefits of this progress, in the form of competitive pricing, to advisers and their clients.”

Platforum senior analyst Andrew Ashwood notes the initial lift in prices following the Elevate acquisition and says the recent price change is welcome:

“All Elevate clients will now be paying less in custody charges than they were before the Standard Life acquisition. The new pricing structure makes the platform instantly more competitive at all portfolio sizes.

“The move to increase platform charges for the majority of clients in the aftermath of joining the Standard Life business didn’t sit well with advisers at the time, but Standard Life has to be commended for bringing those charges back down, and then some, following the necessary developments being completed.”

Recommended

3

Are DFMs interpreting risk ratings correctly?

Money Marketing takes a look at the role advisers should play to help DFMs build suitable discretionary portfolios With an ever-greater regulatory focus on taking the right risk for the right client, eyes are turning to how discretionary fund managers actually turn an adviser’s fact-find into an investment portfolio. Last year, the FCA looked at […]

1

Danby Bloch: Planning for the 100-year life

The chances of living to 100 are increasing and this has important implications for financial planning The other day, I was idly wondering how long I was likely to live – and the implications for my work, finances and family life. What prompted this terminal thinking was reading a book on holiday called The 100-Year […]

6

Malcolm McLean: Simpler pension tax relief is only fair

Pension tax allowances have created a complicated system that is not working in the interests of consumers Being able to get tax relief on contributions to a pension scheme is probably something that we tend to take for granted and don’t value enough. The relief provides an incentive to join a pension scheme in preference […]

Fire-Blaze-700.jpg
20

FCA draws blank on phoenixing estimates

The FCA has drawn a blank on providing an estimate of the level of so-called “phoenixing” by financial advice firms. Phoenixing is the term used to describe the practice where directors of advice firms with impending complaints wind the firm down, so do not pay out on the claims, which then have to be handled […]

Tax avoidance (the fight goes on)

In recent times, we have witnessed high-profile celebrities and sports stars make the headlines for potential tax liabilities on ‘failed’ tax avoidance schemes. We are now used to reading about these individuals, but what about those who advise on such schemes? Read more

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. Despite Mifid 2 etc, it’s good to see some downward price pressure in the advised platform space.

Leave a comment

Close

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

Email: customerservices@moneymarketing.com