Important change to pricing for trades within models

07 Nov 2024

We’ve removed trading charges on all Exchange Traded Instruments held inside models on the Aviva Platform

We have some good news! Following discussions with firms on the importance of holding Exchange Traded Funds (ETFs) as part of your model construction, we’ve removed the £1.50 trading charge on all Exchange Traded Instruments (ETIs) held within a model.

This includes ETFs, Investment Trusts and direct shareholdings to create parity in pricing with traditional funds. It applies to buys, sells and rebalances. 

Why we've made the change?

In a nutshell, we want to help advisers deliver value for money for their clients.

Model portfolios continue to be a fast-growing investment segment that supports advisers in meeting the investment needs of their clients.

We’re seeing advisers increasingly look to diversify the asset mix within their portfolios so they can access a wider range of markets and more affordable charging structures. This can be done by holding ETFs within models either alongside or instead of traditional funds.

Removing the £1.50 trading charge on all ETIs held inside models will support advisers who want to be agnostic in their investment recommendations.

Regular rebalancing of portfolios is important for making sure the model stays aligned to its mandated asset allocation and risk target. Removing the charge helps advisers to rebalance whenever needed without passing on unnecessary costs to clients.

Please note

Any corporate clients (i.e. Company or Charity) need to hold a valid Legal Entity Identifier (LEI) code for that specific entity, prior to any ETI trades being undertaken. Customers cannot use the LEI code of the adviser firm or Discretionary Investment Manager.

Trusts of any type will also require a valid LEI code, unless all of the following conditions are met:

  • we are informed of the underlying customers/beneficiaries
  • we hold details of their nationality and the relevant national identifier
  • they are set up on the FNZ platform as an “interested party” to the account

If you have any questions about this pricing change or ETIs, feel free to get in touch with your Aviva contact who will be happy to answer them.