AJ Bell removes charges for Junior SIPPs and dealing charges on bulk trades

6 February 2019

AJ Bell Investcentre has removed the £1 dealing charge previously incurred on all deals executed through its Bulks and Models tool as well as scrapping establishment and annual administration charges for all Junior SIPPs.

The Bulks and Models tool is a popular feature for many advisers who establish and manage portfolios on the AJ Bell Investcentre platform, because it enables them to place multiple trades at the same time to create and manage the portfolios.  Advisers will now be able to do utilise this tool without worrying about incurring any dealing charges on behalf of their clients. 

This price cut will be particularly valuable for the growing number of advisers running centralised investment propositions and hence it will also apply to AJ Bell’s risk-targeted Managed Portfolio Service (MPS), which has proven popular amongst users.  Last year, AJ Bell reduced the annual management charge on its MPS from 0.25% + VAT to 0.15% + VAT.

The removal of the Junior SIPP establishment fee will save clients £120+VAT and the removal of the quarterly administration charge on Junior SIPP investments held in AJ Bell’s Funds & Shares Service will provide further savings of up to £200+VAT per year.  This is a significant saving for clients wishing to engender a long term savings habit in their children, with AJ Bell’s very competitive standard SIPP charges only applying once the account holder reaches age 18.

Billy Mackay, marketing director at AJ Bell Investcentre, comments:

“These changes have been made in direct response to feedback from financial advisers.  Many of them now use centralised investment propositions and were telling us that whilst the charge for dealing via our Bulks and Models tool or for our MPS was small, it added another challenge in terms of how best to deal with disclosure.  The removal of the £1 dealing charge is therefore a simple but important change that will be welcomed by many advisers and clients using the AJ Bell Investcentre platform.

“Research shows that the majority of young people would not consider using their parent’s financial adviser.  This might be different if they are presented with a significant nest egg and saving for future generations at an early age is a great way to cement the importance of a financial adviser.  With no establishment charge and no quarterly administration charges, the AJ Bell Investcentre Junior SIPP is very competitive and sits well alongside our Junior ISA and LISA to give advisers choice of how best to plan for future generations.”

Follow us: