Aviva Wrap has done away with its tiered charging structure for new customers investing in ISAs or collective instruments, replacing it with a flat fee.
The new rate of 0.25 percent replaces the annual tiered charge, which was capped at 0.55 percent and will apply until 18 September 2011. Under the old system customers would pay the top rate on the first £125,000 held on the wrap, 0.5 percent on amounts between that and £200,000 and 0.4 percent on investments between £200,000 and £350,000. Amounts higher than £450,000 would draw a charge of just 0.2 percent.
Aviva says that only clients with more than £2.25 million on the platform would end up paying more, while a customer with £50,000 in investments would save £150 per annum.
“This offer is good news for our customers and advisers because it cuts the cost of investing and makes Aviva Wrap among the most competitive fund platforms,” said Aviva Wrap senior marketing manager Phil Ralli. “It also gives advisers more choice at a time when they are focusing on ISA and tax planning for their customers in the lead up to tax year end.”