Retirement planning platform James Hay is to increase prices across various products next month in order to fund changes that it believes will deliver a better service for advisers.
The changes will be phased in from April, beginning with IPS products - original products offered by the platform.
Changes to the Modular iPlan, a plan than enables investors to add and remove modules from their self-invested personal pensions (SIPP) as they see fit, will take effect from 31 May.
The platform increased its charges on investments right up to £2.5m, with rates on a £100,000 investment rising from 0.38% to 0.43%. From £2.5m onwards charges fell however, from 0.10% to 0.09%.
Additional fees will also be levied on SIPPs in drawdown, but the platform said the new pricing structure remained in line with James Hay's guiding principle that only those customers using certain product features and services should pay for them.
James Hay CEO Alastair Conway (pictured) said not every client was appropriate for every platform, and admitted those with smaller investments might find a more suitable platform elsewhere.
However, for larger investments Conway said James Hay was a competitively priced platform.
He said: "Re-pricing is an understandably emotive subject but this is absolutely the right thing for us to be doing.
"The changes ensure we can continue to improve our products and service and respond quickly to changing regulation - providing more flexibility and choice as clients plan for their financial future. We are focussed on getting the basics right and have put service top of the list."
Admin charges reduced
Meanwhile, the annual administrative charge on the platform's Modular iPlan will reduce from £195 to £175 for investments up to £200,000, and will be waived completely for investments of more than £200,000.
Additionally, James Hay will remove its £50 fee for contributions and the £50 per cash transfer-in fee.
The platform said recent pension regulation and legislation changes had resulted in increases of costs associated with administering pensions.
It said re-pricing would enable the platform to respond to those changes and develop flexible, enhanced systems to improve its service.
At present James Hay's platform interacts with about 1000 firms, about 300 of which are customers who use the platform frequently.
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