Hargreaves Lansdown has delayed the launch of its new rebate-free pricing structure, which includes the switch to super clean pricing on funds.
The firm is now planning to launch its new pricing structure at the start of February 2014, according to Investment Week
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Hargreaves chief executive, Ian Gorham, said that the platform is under no pressure from rivals to move early in its transition to a new pricing model.
Hargreaves has extended its initial launch, which was scheduled in early January to provide customers an extra month to prepare for the changes.
Under the new charging structure all clients will get the same deals, with existing clients getting higher loyalty bonuses where super clean pricing is negotiated to make sure they are on the same terms as any new clients.
Gorham added that the platform was now working over the pricing offers, with the research team matching proposed super clean prices with fund performance to determine its new look Wealth 150, as well as its brand new core list of around 30 funds.
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By GlobalDataInformation of the new structure is expected to be released at the end of November, along with the new look Wealth 150 and core funds list.
Gorham said the platform wanted to avoid having legacy clients and new clients, preferring to treat them all as ongoing clients.
Gorham also revealed some fund groups were still using rebates but added since most of its clients’ assets were wrapped; any rebate tax implications were minimal.
The firm is opting for a tiered charging structure, with the platform fee being a percentage of a client’s assets under management. Clients will then have two months to prepare for the change in the way they pay for funds via Hargreaves.
Following the new pricing model, the platform expects most clients will pay less with lower cost funds bringing down the overall cost of investing.
Gorham added the platform would not carry out bulk conversions into super clean share classes, only shifting clients into preferential share classes if they asked to switch.
