Reduced platform charges on Wrap

Offering leading solutions at a competitive price for your clients

We’re pleased to announce that we are significantly reducing the platform charge for Wrap clients. The key changes include: 

These price reductions are a direct result of the scale and efficiency benefits we have achieved through last year's platform upgrade. By enhancing and simplifying what we do we can now offer clients our most compelling pricing ever, while continuing to invest in our service experience and new solutions. 

New simplified pricing structure

Alongside a competitive reduction in price, we’ve listened to feedback from advisers and have simplified our charging structure to make doing business with abrdn even easier. We’ve reduced the number of Wrap pricing tiers from four to three tiers, and we’ve agreed with Phoenix Group to remove the product administration charge on Wrap SIPP.

New Wrap platform charge from 1 May 2024

The new terms will be introduced in two phases

Available now for new clients on Wrap

The price reduction will apply to new clients on abrdn Wrap from 1 May 2024.   Please note that the new pricing will be visible on the platform from 21 May 2024 and all new clients with accounts submitted between 1 and 20 May 2024 will have their accounts updated with the new charges by 31 May 2024. 

Expanding these benefits to existing clients

Existing clients will also benefit from the new pricing. The changes will come into effect in Q1 2025, by 31 March at the latest. Applying the new pricing to existing clients is a large-scale and complex change which needs to be scheduled alongside the planned platform developments that we’ve committed to already. Introducing the change for new clients sooner was possible due to the simple nature of the upgrade for new business.

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.

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.

Changes to International Portfolio Bond

Standard Life International, part of Phoenix Group, have announced changes to the charges for the International Portfolio Bond on Wrap. Read more about their announcement here.

Working in partnership

We understand the importance of offering value for money solutions for your clients. The price reductions we’ve made today 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 the changes we’ve announced apply to new customers only at this time, we do not need to issue any customer communications as all new business documentation has been updated to reflect the new charges. When we apply the charges to existing customer accounts we will need to contact them by mail. We will let you know when this will happen and share a copy of the communication with you.

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 solutions?

A: Our plans are unchanged and we have an exciting roadmap ahead. We will deliver the new SIPP in 2024 and we’re developing adviserOS. If you would like to get involved in shaping adviserOS please sign up to the Adviser Community. Following the launch of Money Market MPS earlier this year, we expect to deliver new cash solutions powered by Bondsmith in our next release – currently targeting this summer.

If you’d like more information about the changes, please contact your usual abrdn contact.

Q: What about new in-progress applications and where clients have signed existing T&CS

A: Any in progress applications currently on the platform will have the new terms applied, providing they are submitted after the effective date of 1 May 2024.

If you have clients that have already signed the previous version of our Wrap terms and conditions (version 0124) before submitting their application on the platform, we will accept this until 15 July 2024. After this date, please ensure that the updated version of the terms and conditions is used to prevent any delays in setting up your client’s account.

Charges are not guaranteed. They are regularly reviewed and can be changed.

The value of investments can go down as well as up, and the investor could get back less than was paid in.