14 February 2017

Ascentric adopts simplest charging structure in the platform market

6 min read

 
Margherita Orlandini, Corporate PR Manager, Royal London

Margherita Orlandini

Corporate PR Manager, Royal London

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Ascentric today announces it will be simplifying its charging structure, stripping away complexity and better reflecting how clients manage their savings and investments and how they use Ascentric’s services. 

The simpler, more transparent ‘all-in’ structure is designed to make it easier for financial advisers and their clients to understand the total cost of ownership without having to worry about additional ancillary costs racking up over time. Ascentric’s new charging structure is fit for the more transparent world that regulators are aiming for, illustrated most recently by both the FCA asset management market study and the introduction of MiFID II.

Under this new structure, clients will be charged a single standard account charge. This means Ascentric will not charge fees for any trading – including through its award-winning stockbroking service – or any additional fees for its model portfolios. There will be no additional charges for a SIPP, drawdown, or for ad-hoc administration services either. Ascentric is the first retail platform to offer a simple, single charge across all wrappers and investments, (including SIPP), with no extra fees for any other services.

The new charging structure will come into effect on the 1st May 2017. Clients will pay a single charge of 0.3% of the total value of their assets, in any wrapper, held on the platform up to £1m. Assets of between £1m and £3m will be charged at 0.1% and any assets between £3m and £5m will be charged at just 0.06%.

Cash will be considered a chargeable asset, with earned interest credited to client accounts in full.

The new ‘all-in’ charging structure is subject to a minimum charge of just £15 per month.

Jon Taylor, Managing Director at Ascentric, said:

The new charging structure is the simplest on any adviser platform. It demonstrates our ongoing commitment to providing an unbiased platform service to financial advisers, giving them the freedom to select the very best wrappers and investment options for their clients. This totally agnostic approach to charging across ISA, SIPP and GIA is unique, easy to understand and explain, and removes advisers’ concerns about additional trading, wrapper or administration charges building up for their clients.

“We have seen an increased demand from advisers for passive investments, such as exchange traded instruments. Thanks to both its in-house stockbroking services and now this simplification of charges, Ascentric is able to provide these in a very cost-effective way.

Notes to editors:

The new Ascentric charging schedule is laid out as follows:

  New Charging Structure Previous Charging Structure
Platform charge £0-1m – 0.30% £0-1m – 0.25%
>£1m - £3m – 0.10% £1m-£3m – 0.10%

>£3m - £5m – 0.06%

£5m+ - terms available on request

£3m+ - further discounts available on application
Trading charges £0 Up to £20 per trade
Model Portfolio annual charge £0 Up to £60 p.a.
SIPP annual charge £0 Up to £150 p.a.
Drawdown annual charge £0 Up to £150 p.a.
No appointed adviser £0 0.50%

As an example, Ascentric’s average client holds a portfolio worth £182,600, and places 44 trades a year through model portfolios. Under the existing charging structure, their annual charges would add up to £595.37 – increasing to £715.37 if they hold a SIPP, and £895.37 if they have accessed drawdown. The new charging structure will have charges of £558.76 – irrespective of wrappers held, or volume of trades instructed. These calculations assume 2% of the portfolio is held in cash.

Ascentric’s median client holds an average of £102,985. Assuming they too place the average of 44 trades a year through model portfolios, under the existing charging structure, their annual charges would add up to £400.31 – increasing to £520.31 if they hold a SIPP, and £700.31 if they have accessed drawdown. The new charging structure will have charges of £315.13 – irrespective of wrappers held, or volume of trades instructed. These calculations assume 2% of the portfolio is held in cash.

-ENDS-

For further information please contact:

Margherita Orlandini, Corporate PR Manager, Royal London

About Royal London:

Royal London is the largest mutual life, pensions and investment company in the UK, with funds under management of £117 billion, 8.8 million policies in force and 3,745 employees. Figures quoted are as at 30 June 2018.

About Ascentric:

Ascentric, IFDL and Fundsdirect are trading names of Investment Funds Direct Limited (IFDL).

Investment Funds Direct Limited was founded in 1982, and Fundsdirect launched as the UK’s first online fund supermarket in December 1999. Since that time, the company has built on its reputation as a leading UK fund supermarket to provide Financial Advisers with a Wrap platform under the brand name of Ascentric. It provides a full white label solution for institutional clients requiring bespoke technology and administrative services.

Ascentric is a Wrap platform, available exclusively to financial advisers and offers a fully integrated online investment management and dealing platform. It also enables advisers to transfer their clients’ assets onto a single platform to provide them with the ability to manage their client’s financial needs in just one place.