8 December 2017
TRANSACT CHARGE REDUCTION EFFECTIVE 1 APRIL 2018
We are pleased to announce that we are making changes to our Annual Commission charge that will come into effect from 1 April 2018.
These changes will:
- Apply the same Annual Commission charge to both cash and investment holdings.
- Reduce the Annual Commission for all Portfolios over £60,000 – over 75% of clients will pay less and no client will pay more.
- Reduce our discount threshold of £120,000 to £100,000.
- Introduce a new, lower, pricing band for Portfolios valued over £5m.
A client with a Portfolio of £100,000 will pay £130 less per annum – a saving of over 30%.
| Single or consolidated Portfolios of less than £100,000 | |
|---|---|
| £0 - £60,000 | 0.50% |
| >£60,000 and <£100,000 | 0.29% |
| Single or consolidated Portfolios of £100,000 and above | |
|---|---|
| £0 - £600,000 | 0.29% |
| >£600,000 - £1,200,000 | 0.19% |
| >£1,200,000 - £5,000,000 | 0.07% |
| On the remainder | 0.05% |
Responsible Pricing – These changes are our eleventh price cut since 2008, whereby we alter our prices and share our profits only when we are confident that the change will not jeopardise our award-winning service.
Simplified Charges – We are harmonising the rates for investment and cash holdings.
The new pricing structure applies to all new clients who join the platform from 1 April 2018.
Impact on Existing Clients – The new charging structure applies to new and existing clients. Over 75% of existing clients will pay less. In order to bring the investment and cash rates into alignment three of the rates for cash have increased. The combined effect of these increases being small, and the fact that well over 90% of our funds under direction is in investments, mean that any increase in charge would be very small. However, we will ensure that not one client will pay more as every month we will calculate the Annual Commission charge using the current and the new basis and clients will pay the lower of the two.
Jonathan Gunby, Chief Development Officer, commented:
“We have removed the differentiation between the charges for investment and cash, making price cuts in line with our responsible pricing approach. Successive price cuts have had a positive impact on our net flows and profitability while providing benefits to both advisers and their clients. Our funds under direction are now around £29bn and we are again passing on savings derived from our scale and specialisation in the platform market.”