The move follows a platform technology upgrade which has created servicing efficiencies, the firm said.

The key changes include a 5bps+ reduction at all tiers up to £1m and a 15bps reduction between £500k and £750k.

The company has also introduced simplified platform charging, with one less tier and removed the product administration charge on its Wrap SIPP.

New Wrap platform charges from 1 May

The price reduction will apply to new clients on Wrap from 1 May. Abrdn said it will apply the pricing change to existing clients in its programme of enhancements.

Jonny Black, chief commercial & strategy Officer at Abrdn Adviser, said: “These price reductions are a direct result of the scale and efficiency benefits we have achieved through the platform upgrade implemented last year, while continuing to invest in our service experience and new solutions.

“We have also listened to adviser feedback and have decided to simplify our charging structure to make doing business with us even easier. To this end, we’ve reduced the number of Wrap pricing tiers from four to three tiers and removed the product administration charge on Wrap SIPP.” 

Noel Butwell, chief executive at Abrdn Adviser, said: “It’s been four years since we made changes to our pricing and now we are in a position to offer our most compelling pricing ever.”

Last December Abrdn cut the fee on its Abrdn MPS and Abrdn Sustainable MPS ranges on the Wrap and Elevate platforms. The Abrdn MPS fee reduced from 25bps to 15bps and the Abrdn Sustainable MPS fee reduced from 20 to 15bps.

Also in December adviser platform and SIPP provider Nucleus trimmed its standard annual Wrap platform charge by three basis points for holdings between £200,000 and £500,000. It said the cut would deliver an average 3.2% reduction in charges for eligible customers.

Meanwhile a third (34%) of advisers changed platforms in the last year following the Consumer Duty, mergers and technology updates, according to Defaqto’s annual Platform Service Review for 2024. The figure has been steadily climbing, rising from 28% the previous year and 19% in the year before.

Abrdn manages and administers £495bn of assets for clients (as at 31 December 2023). It has three business arms – investments, adviser and personal. The adviser business provides Financial Planning solutions and technology for UK financial advisers. As at 31 December 2023, the Adviser business administers £73.5bn of assets.

Financial Planning Today Analysis: The Abrdn Wrap changes, including some charge reductions, emphasise the intense competition now seen in the platform sector. Many of the charge cuts being applied by platforms particularly apply to larger portfolios, underlining the fierce competition to attract bigger investors to platforms or encourage those already on platforms to move to a rival. There is little sign of this intense competition ending soon and clients are benefitting as a result. New players, many of them emphasising low charges, will also increase pressure on existing platforms to cut charges once more.