Private equity-backed business Novia Financial is set to cut platform charges starting from 1 January 2023.
This is the first pricing change since its launch in 2008.
The charges, which will be applied to new and existing clients, are as follows:
Novia platform charge cuts
|Price tier||Current charge||New charge (effective from 1 January) - For firms above £10m AuA on the Novia platform||New charge (effective from 1 July) - For firms with up to £10m AuA on the Novia platform|
|£0 - £250,000||0.50% ||0.30% ||0.35%
|£250,000 - £500,000||0.40%||0.30%||0.35%|
|£500,000 - £750,000||0.30%||0.20%||0.20%|
|£750,000 - £1m||0.20%||0.20%||0.20%|
Under the changes, a customer with a £150,000 portfolio would have paid an annual platform charge of £750 and will now pay £450 where the adviser firm holds more than £10m ($11.8m, €11.5m) of assets under administration on the Novia platform (£525 for those firms holding up to £10m of AuA).
The minimum fee is to be increased to £100 from £75 from 1 January 2023 and will only apply to clients with small portfolios paying less than £8.33 per month.
Time to share
Patrick Mill, chief executive of Novia Financial, said: “We’ve been preparing the ground to position Novia for what we believe is a third era for platforms, differentiating on true digitisation and deeper connectivity. Running alongside our investment in technology and work on microservices, has been a review of pricing strategy focusing on value and transparency.
“We’ve always taken a sustainable and responsible approach to price which means we aim to strike the right balance between offering great value for money for customers while continuing to invest in our technology, our service, and our people to help create efficiencies within adviser businesses.
“I’m pleased to say that we’re now in a position to share the benefit of our increased scale by reducing our standard platform charge and simplifying our charging model.”
Novia Financial is owned by private equity firm AnaCap Financial Partners alongside Wealthtime and Copia Capital. Mill is chief executive of all three businesses.