Standard Life has announced a major simplification of its wrap charging structure as part of its leading platform programme.

During February 2014, the firm will unbundle charges across product wrappers and different asset types, complete a bulk conversion to clean share classes and pay a rebate of tax liability, in order to increase transparency.

“The new banded wrap charging structure will benefit advisors’ core clients by reducing charges for SIPP and bond investments, which account for more than 50 per cent assets on the platform. For example, SIPP clients with £200.000 ($319.700) or more invested in funds will see a reduction of up to 16 per cent in charges,” the firm said in a statement.

“Our priority is moving all clients to a simplified and fully unbundled charging structure. The existing model was unwieldy and difficult to explain. By harmonising charges and removing bundling we are eliminating complexity for advisers and allowing straightforward calculation and comparison,” explained David Tiller, Standard Life head of platform propositions. 

Around two-thirds of assets on the platform will also qualify for new advisor discounts to SIPP and bond charges, with reductions of 18 per cent or more off the new standard terms.

“Reflecting adviser feedback we’ve reduced charges for advisors’ core clients investing in tax efficient SIPP and Bond wrappers. This is not a tactical exercise to reduce charges in areas where we hold fewest assets. I am determined that we cannot jeopardise the stability of our platform or run the risk of letting advisors and their clients down in the future for short term tactical advantages,” added Tiller.

As of 31 June 2013, Edinburgh-headquartered Standard Life had £232 billion ($374.7 billion) in assets under administration.