Bestinvest has set up a new execution-only platform it claims will “blow Hargreaves Lansdown out of the water”.
This week, Moneymarketing.co.uk revealed Bestinvest is to launch a new platform, branded Select and powered by SEI, and a new Best Sipp. The platform and Sipp will include investment trusts, shares and exchange traded funds and allow access to around 1,800 funds.
Bestinvest will offer families with over £50,000 in assets an annual bonus of up to 0.5 per cent of eligible funds, including assets within a Sipp. It says an average diversified portfolio would get a 0.25 per cent bonus.
Clients do not have to pay dealing fees on funds and are charged £7.50 on share dealing. Bestinvest will pay transfer exit fees up to £500.
Bestinvest senior investment adviser Adrian Lowcock says: “I think our combination of cost and research will blow Hargreaves out of the water in terms of the competitive package.”
AWD Chase de Vere head of communications Patrick Connolly says: “Hargreaves is in a dominant position in the execution-only market. What we will see is more competition but it will not happen overnight because Hargreaves does a lot of things right and people are happy.”
Churchouse Financial Planning managing director Keith Churchouse says: “They are going to have a pretty hard job to cut into the Hargreaves Lansdown market.”
Hargreaves Lansdown declined to comment.