Platform charges ‘vary widely’

Calculating feesFund platforms' annual fees'vary widely' with some of them not charging anything, research shows.

Twenty-two out of 42 platforms covered in the research apply an annual platform charge ranging from less than 0.1% to more than 0.5% depending on the amount invested.

Defacto, which carried out the research, says use of platforms by financial advisers has grown significantly in recent years “and it is clear” that the UK’s Retail Distribution Review has been a key catalyst to growth.

Defacto’s research also shows that platforms differ significantly in terms of the non-charge related features that they offer. For example, only 33% of the platforms covered offer access to personal pensions.

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