The company argues that being independent obliges it to research investments that clients rarely hold and it says are overly complicated, opaque, expensive or carry excessive investor risk. It cited structured products as an example.
The Bristol-based firm said the change, which was effective from 1 October, means it can focus all its advisory research and resources on ‘the areas that actually matter to clients’, improve the advisory services and bring in ‘a new, simpler tariff for advice’.
Clients will now be able to access a telephone based service for a minimum fee of £495 ($750, €670), regardless of the size of their portfolio. Face-to-face advice is subject to a £1,495 minimum.
Hargreaves Lansdown Asset Management is also changing the charges on its portfolio management service from 1 December. It is removing the annual 0.75% +VAT discretionary charge that applies where third-party funds are used.
It is also adjusting the annual fund charge on the first £250,000 to 0.51% from 0.45% a year, assets between £250,000 and £1mto 0.3% a year from 0.25%, while it will remove the 0.1% charged for assets between £1m and £2m.
Also from 1 December 2015, the 0.365% + VAT charge on its review service will be capped such that the ongoing advice fee will apply only on PMS portfolio values up to £1m, with no further charge on assets above £1m.