Standard Life Wrap, the adviser platform, is to simplify and cut charges by April in a major overhaul of its pricing structure.

The wrap pricing tiers will be reduced from six to four and the starting rate will be cut from 0.4% to 0.35%.

The company says it has seen a shift in the types of advised clients on the platform and is changing its charging structure to remain competitive.

The pricing review will take place alongside the launch of new Individually Managed Accounts (IMA).

The changes include:

• • A new drawdown ‘price lock’ for clients in retirement or about to access their pension
• • A simplified pricing structure reducing the headline rate and removing two tiers
• • Reducing the SIPP Product Administration Charge from 15bps to 5bps
• • Individual wealthy clients with ￡1m or more in platform eligible assets can benefit from a 15bps flat fee

The company says the drawdown price lock means the SIPP percentage platform charge clients will pay in retirement will never rise and clients can also ’reset’ the lock every 12 months.

Standard Life Wrap say the platform charges for most clients paying the headline rate will reduce from April with further price reductions in the higher tiers for wealthier clients.

From April, all individual clients with ￡1m or more in platform eligible assets will have a 15bps equivalent flat fee.

New Wrap Pricing Structure from April 2020

Current Wrap platform charges

Product Administration Charges apply if a firm holds less than ￡75m in platform eligible assets on the platform. For wealthier clients with more than￡1m in platform eligible assets there is a  15bps equivalent flat fee and lower fees overall (see below).

Noel Butwell, CEO of Standard Life Savings, said in a message to advisers: "We take a long term view on our pricing, ensuring fees are set at a sustainable level that aligns our interests with our adviser partners and their clients.

“This is why, as we see the impact of Pension Freedoms emerging through an ever increasing proportion of clients taking income drawdown, we focused hard on ensuring our new fees addressed the challenges faced by these clients in retirement.

“The pricing review is a result of continued growth and efficiencies we’ve generated across our platform business and means we’re able to pass on savings in the form of reduced prices for advisers and their clients.”