AJ Bell said changes to its policy on interest generated on money held in its wealth platform would cost the broker an extra £14 million a year in payments to customers.
In December, financial regulator the FCA warned wealth platform operators about fairness and customer duty in response to which Bell said it would cut charges and pay out more interest.
In a trading update, Michale Summersgill, chief executive, said: “ The changes will benefit our customers to the tune of £14 million a year, reflecting our longstanding philosophy of sharing our economies of scale as we grow - an approach that is very much aligned with the Consumer Duty.”
Shares in Bell continued their recent recovery as the wealth platform revealed both assets under administration and customer numbers rose in the latest quarter.
Net inflows into the platform improved to £1.3bn from £0.8bn a year ago, while assets under administration jumped 7% to £76.2 billion.
Assets under management through AJ Bell Investments also rose by 11% to £5.2bn.
Customers now total 499,000 up from 491,000 three months earlier.
Shares rose 6% to 315.8p.