Published: 14 February 2017
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.”