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View the article online at http://citywire.co.uk/wealth-manager/article/a726711

Hargreaves Lansdown to unveil pricing in mid-January

by Danielle Levy on Jan 07, 2014 at 17:09

Hargreaves Lansdown to unveil pricing in mid-January

Hargreaves Lansdown is to unveil its post-RDR pricing structure on Wednesday 15 January.

The move comes after the discount broker, led by Ian Gorham (pictured), delayed its retail distribution review pricing structure in early December. On 15 January the firm will unveil pricing on Vantage, alongside the pricing of its Wealth 150, how it will be reviewed, and the super low cost share classes that it will access. It will also unveil further details of which fund groups have made it onto the core list of 20-45 funds, selected from the Wealth 150 based on their potential for sustained future performance and ‘extremely competitive price’.

Hargreaves noted in its tender to fund management groups back in May that funds on the core list would receive ‘preferential, ongoing and intensive distribution across all our available media’. Features include email marketing, more likely inclusion in model portfolio, and a premium position on the Wealth 150 website. 

Hargreaves also pushed fund groups to offer it exclusive clean share classes in the tender and floated the idea of funds being marketed solely to its clients as part of its post retail distribution review (RDR) strategy. The UK’s largest direct to consumer platform said it did not expect better pricing to be offered to others in its market, given its distribution, viewing ‘better prices as the “new discount”’ in a commission-free world'.

In a request for proposal and information pack sent out to fund groups, seen by Wealth Manager, Hargreaves said it planned to only offer ‘substantial promotional coverage’ to funds that make it onto its New Wealth 150 and concentrated Core Funds list.

It is required to unveil its unbundled charging structure from 6 April 2014 when new platform rules come in.

Spokesperson Danny Cox said the firm was looking forward to 'letting people know the results of our endeavours over the last few months'.

It said in a statement in early December that the extra time would allow it to refine the Wealth 150 review and overall proposition so that we ensure we achieve the best results for our clients.

Hargeraves has said its unbundled pricing structure will be tiered, and brokers at Barclays have speculated over the levels at which they would be set.

1 comment so far. Why not have your say?

ynys

Jan 10, 2014 at 00:32

Thanks for the heads up. This should be interesting. Obviously RDR marks a point where some significant change will take place and we should all kick back and have a think about what we are trying to achieve and how to do it efficiently.

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