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AWD alters fee structure while rivals stick to tiers
by Jun Merrett on Jan 22, 2013 at 08:02
AWD Chase de Vere has bucked the trend for national advice firms by altering its adviser charging structure in the retail distribution review world.
In contrast to most of its competitors, AWD has changed its fee structure and will charge clients 3% for initial investments. Previously its advisers were allowed to charge up to 5%. AWD’s ongoing advice will cost a client 1% of assets a year.
Rival nationals Towry, Skipton Financial Services, Close Brothers Asset Management, and Foster Denovo will retain a tiered structure for initial investment.
Towry charges 1.5% initial for portfolios up to £250,000, and 1% for assets above this. Skipton clients with up to £150,000 will be charged 4.5%, going down to 0.5% for assets above £750,000.
For a client’s first £250,000, Close charges 3%, dropping in tiers to 1% for amounts higher than £500,000. Foster Denovo’s charges range from 3% to 0.5%, depending on a portfolio’s complexity.
Patrick Connolly, AWD head of communications, said the firm had standardised its initial fees due to adviser demand.
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