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Skandia signs up just 8% of platform clients to adviser charging

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Skandia signs up just 8% of platform clients to adviser charging

Skandia has signed up just 8% of its platform clients for its adviser charging facility, which will launch on 18 December. 

The Old Mutual-owned provider said 30,000 clients had signed up, after applications for the facility were opened in May.

A Skandia spokesman said: '[Opting for Skandia's adviser charging] is up to the IFAs. We think it's really encouraging that 30,000 have signed up when we haven't launched adviser charging yet; these are just pre-registered clients.'

Skandia announced in May that for its adviser charging model it would allow advisers to select monetary or percentage options for initial, ongoing, switching and ad hoc fees. It said it would set maximum fees of 4.5% for initial, 3% for switching and 1.5% ongoing.

Last month Old Mutual Wealth set out its intention to cut costs on the Skandia platform by half after it made a £5 million loss in the first half of 2012.

In an investor presentation the company said it was targeting a cut in platform expenses by around half from 57 basis points to 25-30.

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