Parmenion removes initial charges

Money

Standard Life Aberdeen-owned platform Parmenion has removed its initial fee and initial dealing charges for new business and top-ups.

Parmenion previously charged a 0.25 per cent initial fee, as well as an initial 0.9 per cent dealing fee on active solutions.

The initial charges have been removed across all wrappers and products including Sipps and drawdown.

Parmenion, which is also a discretionary fund manager, says the change is effective from today.

Advisers can still set their initial advice fee through the platform.

Platforum intermediary research head Miranda Seath says the move will cement Parmenion’s position as a competitively priced platform.

Seath says: “This is also evidence that it is an extremely competitive market for small to medium sized platforms. We expect to see more movement on fees in the coming months but small tweaks on fees here or there don’t make a huge difference.”

She adds: “Parmenion’s removal of the initial fee and the dealing fee will make the platform and DFM more competitive for a wider range of assets and should help the platform to diversify its client base.

“This could be important following the announcement of the Intrinsic – Caerus deal earlier this year: Caerus is a significant Parmenion user. By removing the initial fee of 0.25% for new users and top ups Parmenion is bringing its charging structure in line with the majority of the market.”

Parmenion distribution and marketing director Richard Goodall says the change is a response to client feedback.

He says: “Ultimately, this enables advisers and clients to continue to receive the highest quality technology, DFM and service proposition at a price that offers great value for money.”

In August, Parmenion reassured advisers the business will remain ring-fenced in the newly merged Standard Life Aberdeen and it will be continuing with “business as usual”.

The merger between Standard Life and Aberdeen Asset Management completed that month.