Standard Life Wrap has announced details of its unbundled charging structure which will see firms with over £20m on the platform charged 10 basis points less for Sipp and bond holdings.
The new charging structure will see firms with over £20m of assets charged from 0.45 per cent for assets below £100,000 to 0.15 per cent for holdings in excess of £1m for Sipp and bond investments.
The charges are 10bps cheaper at each tier than firms with less than £20m assets on Standard Life Wrap.
The wrap’s Isa and unwrapped charges remain largely unchanged and range from 0.4 per cent for assets below £100,000 to 0.1 per cent for assets in excess of £1m.
Standard head of platform propositions David Tiller says: “Our priority is moving all clients to a simplified and fully unbundled charging structure. The existing model was unwieldy and difficult to explain.
“By harmonising charges and removing bundling we are eliminating complexity for advisers and allowing straightforward calculation and comparison.”
Standard says Sipp and bond customers will receive an average reduction in price of 8bps while on Isa wrappers a reduction is only seen by clients with assets over £1m.
Standard Life has committed to moving all platform assets into clean share classes by the end of the year.
The new wrap charging structure will be effective from February.
Pilot Financial director Ian Thomas says: “This is overdue in my view and I think Standard would acknowledge that. I haven’t used Standard Life before because of the ludicrously complex pricing. This move helps but Standard Life still seem off the pace a little bit given that t is still quite expensive, particularly at the lower end.”
Standard Life platform fee details: