Standard Life is to scrap charges for customers in drawdown as providers firm up their offerings ahead of new pension freedoms coming into force next month.
The firm previously charged a one-off fee of £208 on set-up and £312 for early depletion, but these have both been ditched.
It continues to charge a maximum of 45 basis points for customers going into regular investments, with fund managers setting an addtional AMC. Standard Life estimates the charges are equivalent to 0.7 per cent for most customers.
Standard Life head of adviser platform propositions David Tiller says: “The impact of the pension freedoms goes well beyond provider and adviser operational readiness.
“This legislation will transform the UK long-term savings market. Instead of being seen as inaccessible and opaque, pensions are about to become consumers’ long-term savings vehicle of choice. Our role is to make it easy for advisers to access the flexibility, which is why we’ve decided to drop these additional drawdown charges.”
In addition, the provider continues to develop its wrap proposition following the January launch of DFM Discretionary Plus, and expects to implement drawdown reporting as well as investment hub multi-portfolio capability.
Tiller says: “We know advisory businesses understand the opportunity arising from the new pension freedoms, but, at the same time, are concerned about increasing their capacity to deliver retirement advice while managing the obvious risks for clients living off their portfolios on a day-to-day basis.
“Platform technology has a clear role to play in providing an efficient and consistent way to facilitate the level of advice these clients need.”