7IM opens up platform to rival DFMs and overhauls charging

Seven Investment Management (7IM) is to open up its platform to third party discretionary fund managers (DFM) and has changed its charging structure.

It said it would add third party DFM model portfolios in the second quarter, with bespoke portfolios added by the end of the year. Currently the platform only provides access to in-house discretionary management.

7IM head of platform Peter Wyatt (pictured) said the move was a response to adviser demand. ‘We’ve been getting feedback from our users during quarterly and half yearly user group meetings and from that feedback we’re in two phases of development. The managers will appear on demand as and when the adviser demands.

The move follows an overhaul of the platform’s charging structure in January, which makes it cheaper for investors with smaller amounts. The new charging structure is as follows:

• Up to £500,000: 0.3%
• £500,000-£1 million: 0.25%
• More than £1 million: 0.15%

Under 7IM’s previous charging model, assets up to £500,000 attracted a 0.4% charge, the next £500,000 was charged at the same level of 0.25%, assets between £1 million and £1.5 million had a 0.2% charge and amounts over that were charged at 0.15%.

The new structure has also removed additional transactional charges. Wyatt said the new charges were simpler.

7IM has also launched a margin lending service available to all users, after a pilot scheme for the offering last year. Clients will be able to borrow up to 50% of the value of their portfolios, although the scheme will not apply to pension assets.

The loans carry a charge of 3.5% above the Bank of England base rate. 7IM said the service would allow advisers to compete with private client banks.

Additional reporting from Rachael Revesz