Hargreaves Lansdown has secured an average discount of 11bps for clients on annual management charges as part of a Retail Distribution Review Pricing announcement.
The lower charges relate particularly to funds on the Hargreaves Lansdown Wealth 150 list.
These will apply from 1 March, with the average charge for a Wealth 150 fund falling to approximately 0.65% - compared to the standard market annual management charge of 0.76% for the same funds.
The firm has selected 27 favourite funds where the average charge will be 0.54% - an average discount of 0.16%.
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The level of loyalty bonus or rebate passed to clients on their existing fund holdings will be significantly increased, often to around 0.75% per annum.
As a result of the RDR, various changes have been made to client charges. The key change is the introduction of a tiered fee on fund investments - shown in the table below:
The company has estimated that the new system will cost it £8 million in the first year, with a possible extra £9m due to imminent RDR "Sunset Rules" in April 2016.
Hargreaves chief executive Ian Gorham said: "We have always sought to share our success with clients through using our negotiating power and by continually reinvesting in our service through new technology, more staff, better information on a wider range of investments, or as we have done here, in lower charges for funds."
