AJ Bell, the U.K. investment platform, announced on Tuesday that it is reducing prices for customers investing via its platform in the Direct-to-Consumer and Advised markets, while also increasing the interest on cash deposits held. These decisions are expected to benefit customers by approximately £14 million ($17.6 million) annually.
According to Chief Executive Michael Summersgill, AJ Bell has always aimed to share its economies of scale with customers as it grows, aligning with the Consumer Duty. He also mentioned that these pricing changes have been planned for some time. The new prices will be effective as of April 1.
The regulator has directed firms to ensure fairness in the amount of interest they keep and charge customers holding cash, making necessary adjustments. The deadline for these changes is set for February 29.
Summersgill stated that AJ Bell is not only improving its competitive rates of interest but also reducing dealing charges for Direct-to-Consumer customers and cutting custody charges for advised customers. He confirmed that the financial impact of these changes has already been accounted for in the company’s accounts.
At 1350 GMT, shares were down 15.0 pence, or 4.8%, at 296.60 pence.
