FTSE Apcims 50% discount can't calm licence fee anger

FTSE Group is offering members of the Association of Private Client Investment Managers and Stockbrokers (Apcims) a 50% discount to subscribe to the FTSE Apcims indices.

It is a move that appears to have been designed to appease FTSE’s wealth manager clients after several small and medium-sized firms were asked to pay a higher standalone fee to quote any of its indices. This has been stripped out from the fee they may have formerly paid for data feeds.

It is understood the sums requested depend on assets under management and numbers of registered individuals but were as high as £40,000 for some boutiques as revealed by Wealth Manager last month.

In a letter sent to Apcims’ members, FTSE’s managing director of global sales Tony Raw offered the 50% discount on the standard annual fee effective from January.

A spokesperson for Apcims added the trade body had been working with FTSE to realise a ‘tangible benefit’ for its members who use the FTSE Apcims Private Investor Indices.

However, the move has done little to counter the disappointment of a number of wealth managers. One described the letter as a ‘fait accompli’, arguing the offer was relatively tokenistic – although the firm has agreed nonetheless to pay the increase.

The wealth manager, who preferred to remain anonymous, said: ‘This is still a large rise to firms, over and above the additional cost of running client money – and we have got a regulatory requirement to quote a benchmark for performance.’

A spokesperson for FTSE Group said: ‘We work with all clients to develop a consistent pricing structure, across all of our products.’

In a follow up article to the revelation last month we provided a list of FTSE alternatives for wealth managers, while and article from Asset Risk Consultants's managing director Graham Harrison (pictured) questioned whether indices should be free goods.