Reduced platform charges for existing clients on Wrap
17 February 2025- 5bps+ reduction at all tiers up to £1m
- 15bps reduction in the £500k and £750k tier
- simplified platform charge with one less tier
- removal of the product administration charge on Wrap SIPP and Onshore Bond.
By enhancing and simplifying what we do, we can now offer all clients our most compelling pricing ever, while continuing to invest in our service experience and new solutions.
Simplified pricing structure
Alongside a competitive reduction in price, we listened to feedback from advisers and simplified our charging structure to make doing business with abrdn even easier. We reduced the number of Wrap pricing tiers from four to three and we’ve agreed with Standard Life to remove the product administration charge on Wrap SIPP.
In addition to these changes announced last year, Standard Life has also agreed to remove the product administration charge for the Onshore Bond for all new and existing clients from 17 February 2025 (with the change being applied to clients’ accounts on 5 March).
Wrap standard platform charges for all clients from 17 February 2025
|
Platform Eligible Assets (PEA) |
Old charge |
New charge |
|---|---|---|
|
£0 - £250,000 |
0.35% |
0.30% |
|
£250,000 - £500,000 |
0.25% |
0.20% |
|
£500,000 - £750,000 |
0.10% |
|
|
£750,000 - £1m |
0.15% |
|
|
£1m plus |
0.10% |
Available now for all clients on Wrap
These rates are effective on Wrap from 17 February and the new lower charges will be reflected when they are next applied to your clients’ accounts from 5 March.
Significant savings for your clients
The new pricing means we continue to offer value for clients at all asset levels.
For individual wealth clients with £1 million or more PEA, we have further simplified our pricing structure. We’ve removed the 0.15% flat fee for new accounts due to the much-improved standard pricing for wealth clients.
As a result of the reduction in charges, the new standard terms are now lower than the existing large case pricing for most clients. This means very few clients would benefit from the large case pricing, so we will no longer accept requests to apply these terms for new or existing accounts, to further simplify our charging structure.
These changes, along with our existing solutions such as the Wrap SIPP drawdown price lock and discounts for family linked accounts, further helps to maximise value for your clients.View the Wrap charges page for more information about the new pricing structure.
International Portfolio Bond charges
Following a recent review, Standard Life International has increased the monthly product administration charge (PAC) for the International Portfolio Bond (IPB) to 0.12% from 17 February (with the change being applied to clients’ accounts on 5 March).
For existing IPB customers, the PAC will increase by 0.05% to a maximum of 0.12% to cover their administration costs. At the same time, we (abrdn) have reduced our monthly platform charge to ensure that the overall monthly charge will not increase for any client.
The PAC for clients who do not yet have a Wrap IPB but take out the product from 17 February 2025 will be 0.12%.
Working in partnership
We understand the importance of offering value for money solutions for your clients. The price reductions we’ve made ensure that we can deliver a premium proposition at a highly competitive rate, whilst being able to continue to invest in our solutions and services. We want to be the easiest partner for you to do business with and help you run your business as efficiently as possible. Visit our Wrap help centre for support and information to get the most out of using Wrap.
Frequently asked questions
Q: Will you be contacting my clients about these changes?
A: As we recognise you are best placed to speak to your clients about these changes, we will not be contacting clients directly to notify them of this change. You can find details of your clients’ current terms in the Charges Schedule, accessed from the main client menu on Wrap.
Q: Are there any changes to family linking?
A: There are no changes to family linking terms as a result of this announcement. Under our existing terms we can link up to 10 close family members as long as one family member has at least £500,000 PEA in an individual account. Couples can benefit from family terms too, by linking two individual accounts and a joint account if the combined total is at least £500,000 PEA. More details about family linking can be found on the Wrap charges page of our website.
Q: Will the drawdown price lock offer remain in place?;
A: Yes, we will continue to offer our innovative drawdown price lock offer for all Wrap SIPP clients, including new clients on new Wrap charges. There will be no change to the process used for applying the price lock for existing business. More details about the drawdown price lock can be found on the Wrap charges page of our website.
Q: Will a reduction in charges have an impact on your commitment to invest in new and enhanced services and solutions?;
A: Our plans are unchanged and we have an exciting roadmap ahead with new developments including the launch of a new abrdn SIPP with fully online drawdown, helping to streamline processes and increase the value you bring to your clients. If you would like to get involved in shaping the development of our propositions, please sign up to the Adviser Community.
If you’d like more information about the changes, please speak to your usual abrdn contact.