Standard Life has unveiled the details of its unbundled charging structure, which will include discounts for some advised clients.
The wrap, which now operates on a semi-bundled structure, will move to the new unbundled pricing in February 2014, providing advisers and their clients a much clearer view of what they pay.
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The new structure will benefit advisors core clients by reducing charges for SIPP and bond investments, which account for more than 50% assets on the platform.
In addition, about two-thirds of assets on the platform will also qualify for new adviser discounts to SIPP and Bond charges
Standard Life said that it will offer the discounts on factors including the size of the adviser business, efficiency of the operating model and the long-term growth potential.
The new charging structure will see firms with over £20 million on the platform charged 10bps less for Sipp and bond holdings. It will also see firms with over £20 million of assets charged from 0.45% for assets below £100,000 to 0.15% for holdings in excess of £1 million for Sipp and bond investments.
The wrap’s ISA and unwrapped charges will remain unchanged and range from 0.4% for assets below £100,000 to 0.1% for assets in excess of £1 million.
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By GlobalDataDavid Tiller, Standard Life head of platform propositions, said: "Our priority is moving all clients to a simplified and fully unbundled charging structure. The existing model was unwieldy and difficult to explain.
"By harmonising charges and removing bundling we are eliminating complexity for advisers and allowing straightforward calculation and comparison.
"Reflecting adviser feedback we’ve reduced charges for advisers’ core clients investing in tax efficient SIPP and Bond wrappers. These wrappers are core to the provision of on-going advice and represent a significant proportion of assets on the platform," Tiller added.
