'No good reason' to pay 40bps+ for platform

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There is no longer any "good reason" why clients should pay above 40 basis points (bps) for access to a platform, an analysis of the market has concluded.

The Lang Cat's Guide to Platform Pricing, first serialised on IFAonline in August, found platforms would face "significant downward pressure" in 2013, exposing firms with expensive pricing models. At all portfolio points, advisers have at least eight platforms to choose from that offer charges of 40bps or less. This rises to 12 platforms at £100,000, 15 at £500,000, and all 18 surveyed at £1m. At £100,000, the lowest cost provider is Alliance Trust Savings, costing 9bps, including an allowance for trading costs. The most expensive provider is AXA Elevate, at 55bps. For SIPP busines...

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