View the article online at http://citywire.co.uk/wealth-manager/article/a732348
Can wealth managers cash in on the platform price war?
by James Phillipps on Feb 05, 2014 at 11:22
‘We are very keen on greater clarity so it is easier for people to make decisions and choices about what service best suits them. There has been a remarkably small cost that is the difference to use discretionary management on a platform for a long while. This is now more obvious,’ Reid said.
Iqbal Gandham of low-cost discretionary manager Nutmeg also hopes that greater transparency will provide a fillip for private client investment firms.
‘From a discretionary manager’s point of view, prices are becoming similar and if you look at topline charges, underneath that there is a plethora of trading charges and exit fees. Service is where there is differebentiation.
‘If you are doing DIY and paying 1%, why not go to a discretionary manager where you are paying approximately the same fee? It is a question of “can you get a better level of service for a better fee?”’ he said.
In the version of this article that appeared in last week's Wealth Manager magazine, a reference to Brewin Dolphin's 'commission per transaction' was erroneously included in a table which was meant to refer only to Brewin Dolphin's 'fee-only' charges. Brewin Dolphin has asked us to make it clear that it does not charge commission, but rather a £20 charge per transaction in its fee-only model, and we are happy to do so.
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