Adviser platform Parmenion plans to introduce tiered adviser charging on its platform this summer to support evolving business models in advice firms, it said.

The move, which was in response to “user demand”, will allow advisers to create their own charging structures for different clients, the company said.

Daniel Edwards, Parmenion's head of retirement and wealth planning, said: “We are introducing tiered adviser charging in answer to a key ask which we have been hearing from many of the advisers we speak to and is backed up by the latest Langcat research and Investment Trends reports.”

The Investment Trends 2024 Adviser Technology & Business Report revealed that 40% of advisers have or are planning to change their charges.

Parmenion said its new feature will allow users to tailor charges to different client segments. It said in the light of Consumer Duty, the ability to tailor charging structures will support advice firms who want to actively manage their charging structures to demonstrate the value they provide.  

The changes will be introduced from late summer when advisers will be able to create different charging structures on the platform and determine the number of tiers and the percentage charge for each tier.

They will also be able to link new and existing clients to the correct tiered charging structure and move clients easily between charging structures.

Mr Edwards said: “Adviser charging replaced commission as part of the 2012 Retail Distribution Review (RDR). Since then, there has been surprisingly little innovation, with single percentage-style charging still underpinning many advised businesses.

“Having the flexibility to shape their own charging structure for different clients should help advice firms to meet their obligations under Consumer Duty and evidence how they are providing value and delivering good client outcomes.”

Parmenion is a technology and investment solutions business launched in 2007. The value of investments under its management now tops £9bn. It said more than 1,500 adviser firms have selected the platform as their partner to deliver their chosen investment proposition to more than 90,000 underlying clients.