AXA Wealth is to cut the cost of its wrap platform Elevate by around half for the post-retail distribution review (RDR) world.
From 1 January Elevate will charge under 35 basis points (bps) for assets between £25,000 and £100,000. Assets of £500,000 and over will be charged under 30 bps.
Under Elevate’s current 10-tier charging structure the first £50,000 of assets are charged 65 bps, with assets between £500,000 and £749,999 charged 0.45 bps.
Jason Witcombe, director of London-based Evolve Financial Planning, which uses Elevate, said the new charges would make the platform more competitive and suitable for clients with smaller portfolios.
‘With the cut to the lower figure, Elevate is taking a view that there’s a lot of smaller clients out there and advisers need to find a better home for them post-RDR,’ he said.
‘The charges sound very good and competitive; at £25,000 65 bps just isn’t competitive but 35 bps is.
‘There is a downwards pressure on all platforms at the moment, 50 bps used to be the norm but now it’s becoming 30 bps.’
A spokesman for AXA Wealth said: ‘The current structure is quite complex so we are now launching a more straight forward tiered approach. Winning the platform war is key for AXA Wealth. The new model will refine the “what you see is what you pay” pricing ….to give customers a more competitive charge and a simpler structure.’