Quilter is cutting charges on its platform by an average of 15% following the introduction of new technology and changes to its cash management policies.
The changes will benefit new customers from June and existing customers during the third quarter of the year.
Fees on a client’s first £25,000 fall to 0.35% from 0.5%, fees from here up to £250,000 fall to 0.25% from 0.3%, then up to £750,000 fees drop to 0.2% from 0.25%. From £750,000 ($927,000, €864,000) on fees stay at 0.15%.
Quilter said a customer with £300,000 on the platform would see a £750 reduction in charges over five years.
The move follows what the firm has hailed as a successful introduction of new platform technology. The company has also made changes to its treasury function over recent months to actively manage cash holdings.
It said it will continue to pay “a competitive rate of interest” to customers, but will retain an element of the cash interest rate its treasury team negotiates. Retaining this money has enabled the broader fee cuts across the platform, Quilter said.
There have been other changes specifically effecting the adviser offering. The firm will launch tiered adviser charging this summer, which it claims will allow advisers to more easily tailor charges based on different customer segments.
Advisers will be able to construct their own charging models with up to 11 tiers, which they can then apply to one or more clients.
Chief executive Steven Levin said: “Since launching our new platform technology in 2021 it has always been our intention to share our success with customers as we realise efficiencies as more clients and advisers transact online.
“Our new approach to cash interest rates has allowed us to make a more meaningful price reduction. Our platform cash account is not intended to be a home for long-term savings and our automated cash management feature ensures that platform cash is kept to a minimum.
“Our proposition is aimed at customers that want to predominantly invest in funds for the long term, and we have a range of money market funds should customers need to hold more cash.”
“The ability to build and maintain tiered adviser charging is not widely available within the platform market. This functionality will become essential for advisers that have segmented their client base and are tailoring their advice fees in response to the Consumer Duty. I’m delighted we can support advisers with an enhancement like this that enables them to deliver real value to a range of client segments.”
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