AJ Bell PLC (LSE:AJB) has announced sweeping changes to the amount it charges customers to trade after a fresh bout of regulatory scrutiny came on Tuesday morning.
After warnings from the Financial Conduct Authority (FCA) of intervention over fairness for customers using trading platforms, AJ Bell said it would cut the rates it charges people to invest through its services, alongside paying more in interest.
Such rates that customers pay to buy and sell exchange traded investments via AJ Bell will be reduced from £9.95 to £5.00 per trade from 1 April, the firm said in a statement.
For those who make more than 10 trades a month, this will fall from £4.95 to £3.50 per transaction.
Higher rates of interest will be introduced on cash held by AJ Bell in pensions in drawdown meanwhile, with 3.45% granted for balances below £10,000 to 4.45% for those over £100,000.
This is compared to the highest rates of between 3.24% and 3.75% currently offered to holders of self-invested personal pensions with AJ Bell.
Interest on large cash balances held in both individual savings accounts and pensions in accumulation will rise as high as 2.70% and 3.95% respectively, meanwhile.
AJ Bell has been planning such changes “for some time”, chief executive Michael Summersgill said, with the firm also reassuring it did not ‘double dip’ - as slated by the FCA on Tuesday as the practice of investment firms paying little interest while also charging customers to use their platforms.
“Now we have clarity from the regulator, we are pleased to confirm another significant package of pricing changes,” Summersgill added.