IOOF has reduced the administration fee cap of DKN Financial Group’s white-labelled BT Wrap product by 25 per cent, effective 1 May 2012.
The fee reduction will apply to all new and existing customers, and "all members will be better off", according to IOOF general manager for distribution Renato Mota.
"The pricing of the BT badge hasn’t been reviewed since its initial launch quite a number of years ago," Mota said.
IOOF decided that the product wasn’t as competitive as it could be – particularly in an environment where advisers and clients are very fee-conscious, Mota said.
"The feedback we have received from advisers has allowed IOOF to provide clients with a saving of up to $1,100 per annum," he said.
The decision to reduce the administration fee is also a play at the self-managed superannuation fund (SMSF) sector, Mota said.
"That was probably a segment of the market where we weren’t as competitive as we would have liked. This is really trying to address that issue. Hopefully, we’ll see ourselves pick up a greater proportion of the SMSF market," he said.
The badged BT product is also distributed in the independent financial adviser space, which constitutes "half of our market", Mota said.
DKN is one of BT Wrap’s largest clients, with $5.5 billion in BT Wrap funds under advice, according to IOOF.
