Twitter icon Email alerts icon Latest News RSS icon Magazine icon Stay connected:

View the article online at

Barclays sets out post-RDR stall with new advisory rate card

by Danielle Levy on Nov 16, 2012 at 10:33

Barclays sets out post-RDR stall with new advisory rate card

Barclays has set out its stall for the post-retail distribution review (RDR) world with a new rate card for advisory clients.

For clients using its advisory investment service, the bank will now charge an annual fee of 0.75% for advice and custody on the first £1 million in assets, which then drops to 0.6% for the next £2 million, 0.5% on the next £4 million and 0.25% over £7 million.

On top of the annual management charge, Barclays is setting an ‘advice execution fee per trade’, which is based on a percentage of the investment.

In comparison, some competitors charge commission per transaction and a flat transaction charge, which can be around £20.

For structured products, Barclays’ execution fee starts at 0.7% on the first £100,000, and is tiered thereafter dropping next to 0.4%. Equities and collectives start at 1% for the first £100,000 dropping to 0.65%, while alternatives start at 1.25%.

The rate card has been driven by the onset of adviser charging as part of the RDR from next year, which introduces increased transparency, and the removal of trail commission on new fund holdings.

It is understood that all clients will be brought onto the new structure in time, although those with existing assets where the fee was built into historic holdings will not be double charged.

The bank is also charging 1.25% on the first £5 million for its advisory portfolio management service, which gives clients access to a dedicated portfolio manager. This then drops to 1% for the next £5 million. The service has a formal £3 million minimum investment requirement for new clients, while the bank said it ‘may charge a minimum annual fee totalling £37,500’.

Barclays has set its one-off financial planning annual charge at 2% on the first £250,000, which moves to 1% thereafter.

A spokesperson for Barclays said: ‘We have been writing to [clients] over the last week with details of pricing to ensure we continue to be fully transparent. We believe, through our “investment philosophy”, incorporating cutting edge behavioural finance and asset allocation techniques alongside global expertise in research and investments, we continue to offer a market leading service to clients, with clear, transparent and competitive pricing.’

Sign in / register to view full article on one page

2 comments so far. Why not have your say?

At last!

Nov 16, 2012 at 11:06

What on earth is a "one off financial planning annual charge"

report this


Nov 19, 2012 at 10:12

I thought that, it can't be both "one off" and "annual"! I assume it's the latter, i.e. an annual fee for ongoing advice.

report this

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Sponsored Video: Bringing it all back home

As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.

Today's top headlines

Investing for income in a changing environment

With talk on interest rates on the horizon, our latest roundtable debate covers income investing against a changing backdrop

More about this:

Look up the shares

  • Barclays Bank PLC (06GH_p.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Barclays PLC
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

More from us


On the road

Click here to find out more from the Audience Development team.

Sorry, this link is not
quite ready yet