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Barclays Wealth unveils post-RDR advice charges

Barclays Rain 480

Barclays Wealth has revealed its post-RDR charging structure with a new rate card for advisory clients.

Clients using its advisory investment service will be charged an annual management fee of 0.75 per cent on the first £1m, dropping to 0.6 per cent for assets between £1m and £3m, 0.5 per cent for assets between £3m and £7m and 0.25 per cent for assets over £7m.

As well as an annual charge, Barclays clients will pay an execution fee for every advised trade based on a percentage of the investment.

Barclays’ execution fees for structured products will start at 0.7 per cent for the first £100,000, falling to 0.4 per cent for investments above that amount.

Equities and collectives will be charged 1 per cent for the first £100,000, before dropping to 0.65 per cent.

Clients using a dedicated portfolio manager will be charged 1.25 per cent for the first £5m, then 1 per cent for the next £5m.

Intended for high-net-worth clients, the service has a minimum investment of £3m for new clients. The bank is considering whether to introduce a minimum fee of £37,500.

For clients with a portfolio manager, the bank will levy an annual financial planning charge of 2 per cent of the first £250,000 under advice and 1 per cent for assets above that amount.

A Barclays spokeswoman says: “We have taken a number of steps throughout the last year to ensure our clients are kept fully up-to-date on our approach to the RDR.  We have been writing to them over the last week with details of pricing to ensure that we continue to be fully transparent.

“We believe that, through our investment philosophy, incorporating cutting edge behavioural finance and asset allocation techniques alongside global expertise in research and investments, we continue to offer a market leading service to clients, with clear, transparent and competitive pricing.”

Barclays pulled out of mass market retail advice in January 2011, but has continued to offer advised services to high-net-worth clients through Barclays Wealth.

Baronworth Investment Services director Colin Jackson says: “The rates seem good value but it depends how much time is spent on each deal and how complex it is. If a customer invested £1m in equities then that would cost more than £10,000 for not much work.”


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There are 9 comments at the moment, we would love to hear your opinion too.

  1. £10000 for not much work……….. dream on!
    I reckon there will be a price war break out on fees now as there was so much ripping off going on behind the scenes, which is now exposed, people now know they are being ripped off and will start voting with there feet!

  2. They will be murdered. This is a declaration of not wanting to do business. I cannot envisage an IFA, a Stockbroker or a wealth manager (depending on the size of the assets) not being able to make mincemeat of these charges. And don’t forget – no one else has the sewage reputation of Barclays and their fellow bankers. Who would be daft enough to want to business with them? Let alone at these prices!

  3. Are BW going to be restricted or independant

  4. What a stupid comment above!!
    Banks have not acted properly, but that doesn’t mean everyone who works in them don’t have the customer central to their advice. Post RDR all Financial Advisers have to be very highly qualified and are professionals at what they do. We expect to pay fees to a Solicitor or an Accountant for their advice, if you are about to take a major Financial decision which could change the future of your life, you need expert advice, so this will have to be paid for. Alternatively you can do it without Advice “on line” and take your chances you have made the type of decision Financial Advisers have had extensive training and experience in making. Beware, Value for money is one thing…Cheap is what it says it is!!!!

  5. Funny! Sounds just like commission and trail.

  6. This appears to be the Barclays advisory charge, do they also have the underlying TERs of any unit trusts they will buy and sell as well ?

    I reckon most IFAs could easily undercut this and provide a better service and advice

  7. Does anyone know what is received for the 0.75% annual fee if a client does not use a ‘dedicated portfolio manager’?

  8. One thing clients will get for 0.75% is the chance to contribute to the FSA Fees, FSCS Levy and MAS Fees. They will also benefit from one of the tightest regulatory regimes imposed on any industry and thus they can be sure that every piece of business will have involved hours of compliance related oversight, managerial supervision and system costs.

    Somewhere in there as well will be the cost of the advisers salary, the business premises, tax, employers NI and VAT on all purchases use to support the provision of the service.

    In there somewhere will be a profit which be used to remunerate shareholders for providing the capital to provide the service.

    I have a feeling the shareholder gets a small percentage of the overall cost of providing that service.

    If consumers want all these protections, regulations and government services you have to pay inflated prices!!

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