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Lloyds, RBS and HSBC unveil RDR advice charges
by Alex Steger on Jan 10, 2013 at 12:10
High street banks Lloyds, HSBC , and Royal Bank of Scotland, have revealed their charges for advice in the retail distribution review (RDR) world.
- Assets up to £75,000: £950 upfront charge
- £75,001 to £150,000: 1.3 % upfront charge and max charge of £1,500
- £150,001 to £500,000:1% and max charge of £4000
- £500,001 to £1 million: 0.8 % and max charge of £6500
- £1 million to £3 million: 0.65%
HSBC said: ‘As part of our financial planning review service we offer an initial consultation, free of charge, when we discuss our advice proposition in detail with our customers and ensure alignment with their personal goals.
‘Following the initial consultation, if customers wish to proceed with the full financial planning review, advice will be charged according to our transparent fee structure and based on the assets implemented on behalf of the customer.’
- Initial consultation: free
- Financial plan: £500
- Assets up to £500,000: Tiered activation fee of between 1.25% and 1%
- £1 million and over: 0.75% activation fee
- Annual ongoing advice fee: 0.5%
There are additional platform charges.
Lloyds will operate a tiered fee structure
- The first £300,000: 2.5% advice fee
- £300,000 to £1 million: 1.5% advice fee
- £1 million to £2 million: 0.75% advice fee
- £2 million and over: no fee
It said the model takes into account previous advised investments when calculating the level/percentage fee.