Cofunds price cut costs platform £3.2m in revenue

Cofunds has said its move to scrap its £40 annual fixed platform charge for some users will impact around 80,000 clients, indicating an initial hit to revenues of around £3m.

Earlier this week the platform announced it is scrapping the £40 annual charge for clients using the explicit pricing model it launched last September. While Cofunds has not put a figure on the impact to its revenues, it said around 80,000 clients currently use the new charging model. The loss of £40 per client equates to a total of £3.2m for the 80,000 customers concerned. Cofunds head of marketing Stephen Wynn-Jones said while the move would impact revenues, the impact is not clear cut due to the prospect of the price cut attracting more clients to the platform. The group said...