Charles Stanley Direct unveils D2C platform pricing

Ben Yearsley 2012 200

Charles Stanley Direct has unveiled its charging structure for its new D2C platform which launches this week.

Investors will be charged 0.25 per cent per annum on all commission-free funds for the first £500,000 invested, with the figure falling to 0.15 per cent per annum on a balance in excess of £500,000.

The platform says there will be no charge placed if six or more chargeable trades are made on stocks and shares – including ETPs and investment trusts – placed on a six monthly basis. Otherwise, a 0.25 per cent per annum platform charge will be placed on all investments – excluding non-fund investments and the cash balance – held across all accounts, with a minimum fee of £20 and a maximum fee of £150.

Individual stocks and overseas bonds will be charged annually in arrears at £30 per holding, while there will be an online dealing charge of £10 per trade for stock and shares for online trading and £20 for telephone trading.

Charles Stanley Direct head of investment Ben Yearsley (pictured) says the platform has launched with approximately 1,400 clean-priced funds, which Yearsley says will increase over the course of the year. There is also over 3,000 shares as well as gilts, investment trusts, bonds and offshore bonds.

Anyone who transfers existing business to the platform will have recieve an existing adviser and platform rebate on the annual management charge of a fund before Charles Stanley Direct levies its platform charge on the offering.

Yearsley says he expects the platform to be the second largest in the market, behind his former employers Hargreaves Lansdown, in the next few years.

He says: “Hargreaves Lansdown is number one in size with about £28bn in assets under management and no-one is going to catch it up for a long time. If in three or four years’ time we are a clear number two in terms of assets under management, then that would be an excellent result.

“We are significantly lower-priced than traditional models, which charge 1.5 per cent in dirty pricing, or a rough clean price of 1.35 per cent. We have a simple, transparent charging structure in line with the retail distribution review.”