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View the article online at http://citywire.co.uk/wealth-manager/article/a732648

Barclays starts move to unified discretionary rate card

by Danielle Levy on Feb 07, 2014 at 10:32

Barclays starts move to unified discretionary rate card

Barclays’ Wealth and Investment Management has started to move its clients onto a unified discretionary rate card, Wealth Manager understands.

It is a move that is likely to take some time as it is understood numerous fee rates exist internally, with some dating back to the days of Greig Middleton and Gerrard Investment Management, which were both taken over by Barclays in the 2000s.

Annual management fees under Barclays’ chosen charging structure for risk profiles 2 to 5 start at 1.25% for the first £1 million, dropping to 1% on the next £2 million, 0.75% on the next £4 million and 0.5% on the balance over £7 million.

For risk profile 1, the cost is 0.75% on the first £1 million, 0.5% on the next £2 million dropping to 0.25% over £4 million.

Clients need to have a minimum of £250,000 to invest and the rate card says some of the asset management fee will pay for the activities carried out by its private bankers.

Additional costs include government levies and taxes, third party brokerage costs, annual management fees on funds, re-registration and charges for additional transactions.

Clients are gradually being moved onto the unified structure, and further enhancements to Barclays’ discretionary proposition are expected under new chief executive Peter Horrell. 

Since Horrell took over the wealth and investment arm from previous chief Tom Kalaris, the business has been overhauled following a strategic review.

This has involved a 35% reduction in private banker headcount and a streamlined regional management structure. Linked to this, the proposition for sub-£500,000 clients has been revamped.

Clients in this category no longer have a dedicated investment manager. Instead they have a new point of contact, known as a private client services manager. They are not regulated but are overseen by a regulated private clients manager who is on hand to assist. 

A Barclays spokesperson said: ‘We are planning further refinements to our discretionary proposition, including the consolidation of historic charging structures and ensuring client holdings are moved to clean share classes. We remain committed to communicating these changes to clients as and when they occur.’

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