View more on these topics

Brewin Dolphin reviews service for clients with less than £50k

UK-Currency-Money-Notes-700x450.jpg

Discretionary investment manager Brewin Dolphin is reviewing the services it offers clients with portfolios worth less than £50,000.

Brewin is contacting the clients and requesting discussions over the most suitable service for them. The DFM will not reveal the number of client accounts it is reviewing.

The review will analyse whether clients will be moved out of the firm’s bespoke portfolio management services and whether they can afford Brewin’s minimum fees. 

Brewin launched its Managed Portfolio Service in January last year aimed at clients with between £10,000 and £150,000. Clients are charged 1.2 per cent and are allowed to transfer between the bespoke service and MPS.

A Brewin spokeswoman says: “We do have some clients with portfolios under £50k and we are rolling out a review of their service categories and requesting that we have a discussion about the most suitable service for them for the future.

“We are judging whether these small portfolios are suitable for bespoke services on costs grounds, whether they can afford the minimum fee, top up their portfolio or change service category.”

PMI Independent Financial Advisers director John Stewart says: “This is a sensible business decision from Brewin. Obviously there are many firms with that hangover of clients who may be getting an unsuitable service. You cannot have high net-worth clients subsidising those at the bottom end so this is the right thing for Brewin to be doing.”

In May, Brewin’s interim financial report showed its pre-tax profits fell 44 per cent to £6.9m during the six months to 31 March, down from £12.3m in the same period in 2012.

Recommended

29

Group of 40 Tory MPs back abolition of £10bn pension tax reliefs

A group of 40 Conservative MPs are proposing a major overhaul of the “rotten” pensions industry including the abolition of higher rate tax relief and tax-free lump sums as part of a “moderate manifesto” for the next election campaign. In a wide-ranging report, the Forty Group paper, authored by MPs James Morris and David Mowat, […]

S166 costs soar due to interest rate swap review

The total cost of skilled persons reports soared to over £176m in 2012/13 in the wake of the FSA’s review into interest rate swap misselling. Skilled persons reports, also known as section 166 reports, check for weaknesses or failings in a firm’s practices. The FSA’s final annual report, published last week, shows the number of […]

1

Pension tax relief in the spotlight as Treasury attempts to water down message

A Government review of pension tax relief could be on the cards despite Treasury attempts to water down a statement which cast doubt on the future of current saving incentives. Analysis from the Pensions Policy Institute, published on Monday, suggests there is “little evidence” that the £35bn a year spent by the Government on pension […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. And another provider turns their back on the mass market. RDR is destroying access for ordinary people to financial advice at a time when it has never been more needed.

  2. @ Anon 09:59… it’s not about Brewin Dolphin turning their back on <£50k pots... it's about making sure these clients are in the most suitable service. Seems eminently sensible, fair yet commercial.

  3. Wy are clients with less than £50K in a DAM?

  4. I used to have arguments with BD’s sales people when they told me that their service was suitable for small pots but they tried to assure me that they were suitable. I’m glad I never went there, or I would have looked a right Charlie.

    No doubt they will also write to all of their clients and tell them that they are responsible for checking the suitability of all of the transactions in their discretionary portfolios, like they have done for their IFA relationships. Brewin Shark more like.

Leave a comment