Platform pricing report: Average costs cut by 18% vs. pre-RDR

Laura Miller
clock

Average investors have seen their platform costs tumble by almost a fifth in the last five years, according to research by the lang cat, but advisers are not favouring the cheaper options.

The consultancy's research found the typical custody cost for the current average portfolio size of just under £200,000 has fallen 7bps since 2011, from 0.38% to 0.31% - a reduction of 18%. But despite the benefits to investors - who are on average saving £140 a year as a result - cost is seemingly low on advisers list of priorities when choosing a platform, with the consultancy finding ‘no real evidence pointing to a disproportionate amount of assets flowing into cheaper propositions'. In fact, for a time more assets were put on the more expensive platforms, though that has now evene...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Wrap/platforms

Will IFA-owned platforms take over the financial advice sector?

Will IFA-owned platforms take over the financial advice sector?

PA talks to industry experts on the future of adviser-owned platforms

Sahar Nazir
clock 27 March 2024 • 9 min read
CGT support from platforms now 'adviser must have'

CGT support from platforms now 'adviser must have'

Shrinking personal allowances dragging more investors into CGT net

Jenna Brown
clock 27 March 2024 • 2 min read
Aviva named the preferred platform provider by advisers

Aviva named the preferred platform provider by advisers

Quilter remains in second place followed by AJ Bell and Transact

Isabel Baxter
clock 04 March 2024 • 1 min read