Skipton Building Society’s financial advice division has posted a pre-tax profit of £500,00 for the first half of the year, compared to a £500,000 loss for the same period in 2012.
In its half-year results, published today, Skipton says the profit for its advice arm, which covers investment, protection and mortgage advice, was due to successful RDR implementation and strong stock market performance.
Skipton’s investment advice arm Skipton Financial Services charges for advice based on a percentage of assets invested. Client have to have a minimum of £10,000 to invest.
It charges 4.5 per cent for initial advice on the first £150,000 invested, falling to 3.5 per cent on amounts between £150,001 to £300,000, 2.5 per cent on amounts between £300,001 to £450,000, and 1.5 per cent on amounts between £450,001 and £600,000.
Assets invested between £600,001 and £750,000 are charged at 1 per cent, and any assets over £750,001 are charged 0.5 per cent.
The charge for new investments will take into account previous investments to offer a lower fee.
Clients who opt for ongoing advice are charged 0.75 per cent a year.
Overall Skipton posted a pre-tax profit of £34.4m in the first six months of the year, up 59 per cent on the £21.7m posted in the first six months of last year.
In February Skipton announced it had set aside a total of £5.6m for charges rebates for fund underperfomance and customer redress relating to a past business review.
Under its “Monitored Informed Investing” proposition, Skipton Financial Services offers customers a rebate on ongoing charges if a fund underperforms against its peers.