Clients with funds between £100,000 and £250,000 received a rebate of 0.1 per cent but this has been axed completely. Investors with funds between £250,000 and £500,000 received a discount of 0.2 per cent but will now get half that.
Fund values ranging from £500,000 to £750,000 got a 0.3 per cent rebate while investors with £750,000 to £1m got a 0.4 per cent rebate but these have been reduced to 0.2 per cent and 0.3 per cent.
People with over £1m previously got a discount of 0.5 per cent – at least £5,000 – but now only get a 0.35 per cent rebate.
Standard Life head of communications Mark Polson says a recent 20-basis-point reduction in charges more than counters the rebate reductions.
He says: “The most important thing was to bring the basis-point charge down. We took it down a lot and that is why the rebates have now dropped. The overall cost of investing on our wrap is still, we think, significantly less than most of our competitors.”
Key Benefits managing director Andrew Martin says: “There is a lot of obfuscation in Standard Life’s wrap. It is not clear who earns what and it seems the latest charging changes have not cleaned this up. The time for smoke and mirrors in financial services is long past and life offices need to wake up to it.”