BY ELIZABETH MCARTHUR | MONDAY, 24 MAY 2021
A specialist managed accounts platform has cut the administration fee on its superannuation offering.
WealthO2 lowered the admin fee on its Super Simplifier by 3.3 basis points, capping fees at $1760 per member or $3630 across six family members.
The company said the fee cut is in response to more advisers adopting Super Simplifier.
"This fee reduction, coupled with no minimum fee, makes Super Simplifier a very cost-effective product for those advisers looking to provide a market leading advice offering for super and pension clients, as well as provide a profitable service to the typically lower balance adult children of existing clients," WealthO2 managing director Shannon Bernasconi said.
"Super Simplifier gives members the personalisation, transparency and flexibility of an SMSF but for a fraction of the cost. It is the only a low cost offering of its type in the market and offers full transparency of assets through the use of the HIN structure and managed accounts."
She argued that the business is contributing to price pressure on platform offerings, which she hopes will lower the cost of providing advice and increase practice profitability.
"Platforms that haven't kept up with the latest developments in technology have a higher cost of operation that is often recouped through hidden or layered fees. Hence the newer investment platforms like WealthO2 that don't rely on cash fees, MER uplift or SMA fees for revenue, can lower the overall cost to the client even further," Bernasconi said.
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