Wealth manager True Potential has launched four tirered platform charging levels for its platform, replacing its former 0.4% flat fee model.
The new charges, launched today, will see the ongoing ongoing platform charge calculated at client level, consolidating all eligible assets into a single effective rate applied pro-rata across all accounts.
The charges will use a marginal system, meaning that clients only pay a specific charge on the portion of their assets within that tier.
The levels are:
Client assets under administration | New tiered charge rate (previously all charged at 0.4%) |
£0-£150,000 | 0.4% |
£150,001-£500,000 | 0.3% |
£500,001 - £5,000,000 | 0.2% |
£5,000,001 and above | 0% |
Source: True Potential
True Potential said the introduction of tiering would see many clients benefit from lower costs overall. The wealth manager said it meant that clients with assets above £150,000 would benefit from reduced platform charges as their investments grow.
Jeff Casson, CEO of True Potential's investments division, said: “Today's enhancement is the latest step in our ongoing commitment to improving that value through a combination of competitive pricing, technology innovation and platform development.”
He added that the new structure builds on True Potential’s commitment to Consumer Duty principles, reinforcing its approach to simplicity, transparency and demonstrable value for money for clients and advisers.